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This seems to be a move to the middle of the road (from higher end to budget) for console owners. I think that this is probably a good thing, I mean the Cell is the only thing that you really need. I wish that they would include a ethernet cable, for Home and updates but so what? That's a minor issue.

 

Secondly, this is not an insult to European gamers.  Instead of looking at this as an insult, look at the Wii.  That is priced even cheaper.  What does that say about the European consumer?