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Clearly it isn't.

Price is not the sum of it's components... I have said this before. The price should be put at whatever point customers are willing to pay for. So the Wii is priced perfectly.

The DS is somewhere between N64 and Dreamcast graphically, should it be priced at $20?

The PSP is about as powerful as a PS2, should it have a price cut?

The PS2 is less powerful than the GameCube and Xbox were.... so why was it's price higher?