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Slimebeast said:

But Nintendo is trying to sell a $350 console to a demografix that is expecting to pay no more than $250 for a console.

Meanwhile Sony can easily sell the PS4 at $450 to a demografix that is used to buy consoles at $400.

Back when I was talking about the PS-Vita and 3DS I had mentioned that I think the typical consumer doesn't evaluate the hardware of a system when they consider the value of it, and for the most part they evaluate it based on what it is. A (relatively new) handheld gaming system is worth $150 to $200 for consumers regardless of the hardware that is in it, while a (relatively new) game console is worth about $300 for most customers. No matter what you add to the system, consumers don't tend to see increased value for a system beyond this ... With the current generation of consoles we saw this as the PS3 and XBox 360 started to see strong sales after they sold for (less than) $300 but struggled above that price.