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The thing is that during this gen PS3 was so damn expensive because of blu-ray. Not because of powerful HW. HW wise it's only a bit ahead of X360. If these specs are true Sony doesn't even have to go overkill with hardware to have most powerful console so I don't know why people are immediately assuming it would be sold with a big loss like PS3. Really these specs make it sound that MS targets $299 or even lower price point. Sony could target $399 price point and therefore have more powerful console but still make profit.