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There were (approximately) 160 Million console owners in the previous generation and (approximately) 120 Million of those owners spent $200 or less on their console. Now, some of these gamers may be willing to spend more this generation than last generation but it is unlikely that you will see a dramatic shift towards more expensive systems; what this means is that Sony and Microsoft have priced their consoles in a way that shuts them out of 60% of potential purchases for this generation, and both consoles are in direct competition to caputre the other 40%.