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Japan's traditionally the least sensitive to pricing out of every region.  DS only just had it's first JP drop a few months back. Adjusted for inflation, PS3 launched at around just $100 more than PS2 in Japan too.... the value of currency doesn't remain unchanged, I'd say $299 is very much a "massmarket" price today.  I mean, look at how many units Wii moved at just $50 less?  Isn't that massmarket?