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If the existance of cheaper competing consoles was that decisive then no new consoles would prevail on the market. Not everyone is willing to buy a Xbox 360 or PS3 now when they know they will lose major support when they will be replaced next year and that Wii U is a console that might last them 5 to 6 years, at least.
PS2`s success didn`t stop Xbox 360 or Wii from selling .