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I don't see why they wouldn't. They'd get a cut of that monstrously high price, and they can still sell some accessories with the device.

I mean, it'd be like not selling iPods just because most people that have them download their music.

I'm thinking retailers could get as much as $50 per Go sold, in NA at least. In the EU it's probably a less than 50 Euros, given various taxes and whatnot.