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Sony could have been much more successful this gen if they released a console somewhere in between Wii and 360 priced at $300, it seems to be the sweet spot for them. $600 probably turned off a lot of PS2 owners, many of them probably switched to Nintendo or MS becayse of it.

Next gen I think all consoles will be under $350, and the leap in power will be very small, the huge horsepower increase has proven only a money pit so far.

I think any company would be foolish to break the $400 mark.