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Viper1 said:

But that's just the thing.  These are not high end expensive parts and the Nintendo could easily make a profit from the console day 1.

Nintendo is not really the problem here, but 3rd party developers are. Remember all the studios that went belly up this gen? I'm afraid of lots more following them.

Though until you picked me up on prices, I did kinda fear for Nintendo selling consoles at a loss.