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Very important! People are more price sensitive than people are on this site tend to believe. I got the PS 1 in 1999 at $149 and the PS 2 in 2003 for $179. I have a bit more money now so I have a 360, but I before I absoutely refused to buy any system for more than $200. Especially with this horrid economy, $199 will be very appealing to those who were put off from the price. The Arcade does indeed come with a 256k memory card and wireless controller, so its pretty good.