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I don't think nintendo needs to justify charging as much for their console. I mean, this whole scenario of - lose money on a console, make it on software- doesnt really work for smaller hardware company like nintendo.

While I do think it would have been better for everyone if they had something that was atleast comparible in spec to 360 as then most of the ports would be downscaled 360 ports rather than upscaled ps2 ports.