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Releasing a console to the market that can't compete graphically with the other two is a much bigger risk than any other taken in any console generation considering that the first thing that you perceive about a game is the graphics. Motion controls of course were another big risk, a portable with two screens and a touch screen was another big risk. Sony may have sold at a loss even with a very high price but they were an already established name that lead the market for two generations with a console that is filled with features, If N's idea didn't ring with the general public it would have been a complete disaster, cheap components or no.