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Kuturagi essentially delt Sony a losing console when he designed the PS3. Its cost of manufacturing was simply rediculous. Taking this into consideration, Sony and Kaz Hirai have done a downright miraculous job of turning their fortunes around with the PS3 and it's really a testimate to the strength of the PlayStation brand that the system is still around. I can say confidently that if either Nintendo or Microsoft tried launching a console with a $850 production cost, they probably wouldn't still be in the market, let alone competative.