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I think that it is due to the fact that Nintendo wanted to make a good, cost effective system for the masses. I'm not saying it is wrong or it is right but every year you own a 360 and want to truely play it online the system costs $60 more. so a system that charged $400 for a console after the first year kicks you up to a $460 console. and after 5 years you end up paying $700 dollars for that same console. Nintendo kept it even $250 for the console no matter how many years you own it, however I do believe it hurts their online.