Does the Wii prove that the HD razor/blade model is flawed?

[Aprisaiden]

Hopefully SONY now understands that high priced consoles, sold at a loss is a bad idea. (and before anyone brings up PSPGo, that high priced but profitable)

While loss leading was acceptable in previous generations we have reached the point where graphics are now "good enough" for the average consumer. Because of this next-gen consoles really need to focus on becoming as powerful as possible, while only costing $299-$399 to manufacture in order to allow SONY/Microsoft to break even or even slightly profit from hardware at launch.