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Then, of course, there is the fact that everything they have will not only be custom built but also be part of a special deal with the given companies so they won't pay nearly as much to manufacture them as it would cost for someone like me to buy it retail.

I can them maybe spending $90 on the GPU in the console out of their own pocket. The RAM is probably high quality so I will keep 20 for that. 30 and ship the controller. 30-40 for the CPU.

That would put costs from them at $190.

Conegamer said:
That seems unbelievably cheap. At that price, it'd fly off the shelves, literally. But it'd also be underpowered, greatly. I hope Nintendo have learnt from their Wii mistakes; the 3DS would suggest that is the step Nintendo are making...

The Wii won this gen even if all sells stop tomorrow. I still don't undestand where people get the idea that Nintendo made a mistake with the Wii. The only mistake was no providing enough high quality games on the console, not the power.