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I feel dirty reading that article, and the author should be ashamed of themselves for the blatant lack of context. The increase really is a testament to how poorly the PS3 performed in its first year. Also for the record it wasn't just the price that hurt the console in the first year. A sub par launch lineup, a sub par library, atrocious marketing, and plain bad press all conspired in part to drive down sales. The first year was an unmitigated disaster, but the second year actually had some successes, and some mistakes rectified.