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I'm a little confused, probably because I need to go to bed already =) But, what was your argument that the price of the parts not getting cheaper with time? A 1 GB stick years ago cost over $100, now it costs about $20. We know that much of the old GC parts were reused for the Wii, and processors naturally get cheaper with cost. Manufacturing and raw material costs have generally declined with the rest of the economy.

So how exactly is Nintendo locked in to the same price from launch to now for their parts?