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I think the PS2 price cuts were an exageration. If they'd cut the price slower most of the people would have bought the console at a higher price point. Say for example, probably 50-70% of people who bought the PS3 for $299 for the slim/cut would have bought it for $350-$400. We can see this because when the PS3 is out of stock on the 120GB SKU people are still buying the $349 250GB.