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I am thinking many prototypes with different specs. Trying to find new input devices (wiimote, wii u pad, kinect, move, sixaxis). Getting inputs from in house and outside developers. Architecture of online store and other functionalists. Finally testing it enough to the point that it doesn't blow up.

Edit: Costs would be high paid engineers, material costs of prototypes, reseraching cell and in hour propreitary technology costed a lot. Thus Sony is rumoured to go for off market components for PS4.