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Well yeah. That's because Sony loss lead.

As anyone who's had a decent amount of buisness classes will tell you... loss leading basically always screws you on profits.

Loss leading is just a really poor philosphy unless you need a foot in the door.  After the PS1... the PS2 probably shouldn't of loss lead.  Then again if it didn't and the Dreamcast got a 2nd year alone on the market... maybe it's fate would of changed.

Probably not.... but maybe.