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Wow, this is not good news.

How do they expect it to sell to casuals at this price?

If it does not sell to casuals then how does it expect to get enough sales?

If it does not get enough sales then why will 3rd developers continue to support it?

If 3rd party support dies then 1st party devs are all thats left ... is it enough?

Who knows, maybe their just posturing for next-gen, hoping that it will cost a lot less to manufacture down the line.