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If you have to lose a significant amount of money to sell a console because it has high performance hardware what does that tell you about how much consumers value high performance hardware?

Even though the hardware could be discounted compared to what you would pay to assemble a similar system, they can't sell the hardware at what it costs to produce because the value of the system is far less than the sum of its parts. Most "hardcore" gamers don't want to hear this but companies that sell their hardware (for the most part) for a profit, like Nintendo, actually demonstrate what consumers are really interested in when it comes to hardware.