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PSP2 will not cost over $299. Tech wise it looks like to be easily the most conservative gaming system Sony has done since PS1. It uses fairly normal mobile technology. No bizarre architechture like pretty much every Playstation system before.  For example building iphone 4 in June 2010 cost $180 and PSP2 is coming 1.5 years later. Don't know why people are again screaming that Sony went overkill with tech. It's just that mobile tehcnology has advanced so much over the years that you can make fairly cheap system that is able to produce awesome graphics.