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Realistically, Nintendo’s system will  probably be fairly small, energy efficient and be inexpensive enough to be sold for $300 or less without taking much of a loss. While it is entirely possible (and possibly likely) that Nintendo would return to the price to performance strategy behind the Gamecube (which would result in a system that was substantially more powerful than the HD consoles by 2011/2012), Sony and Microsoft would have very little difficulty surpassing their performance; especially if they’re willing to release later or produce a larger, less energy efficient, and more expensive system.