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Wii U has it's fans and will sell and nintendo made huge profits of the Wii so they can afford to sell at a loss. Sony is in the same boat they took the loss on ps3 with introducing blu ray. The ps4 will be profitable no matter what price point depending on what comes with the system. The system itself should not be that costly this time around for sony. If sony can manage to get the ps4 console selling out of the gate consistantly they will be in good shape.