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I don't know what Natal costs to produce, but I do know it needs to be pretty affordable unless MS just wants to target early adopters and build for their next console.

If it's too expensive (and I guess MS cutting the CPU implies it was too expensive in terms of the original build) then it could really struggle to take off.

I guess MS might need to consider selling at cost or even a loss if they want to secure high demand.



Try to be reasonable... its easier than you think...