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Makes sense and a smart move.

This same move is why I expect NeXtBox and PS4 to not be very much more powerful than Nintendo's upcoming machine. They learned their lesson from this gen and will focus on keeping a closer price while still being slightly more powerful.

This of course helps Nintendo too as they will no longer be robbed of 3rd party support as devs push their games accross all platforms to spread the costs per item.

win win scenario.