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The more features you put on an item, the higher the price, the more potential there is to increase the lifecycle via price cuts. It makes people feel that they are getting more for their money because it used to be a luxury item.

I think with that strategy, sony will outlast ms. I think it will be mid 2011. MS will have one last gasp, they'll cut the price but when that wears off, they are done. They are running out of room to cut the price.