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To me, $500 is a lot of money whichever way you look at it. However, I do think that you're getting value for what you pay for. A game console is one of the few items on the market where you're paying less than what it costs the manufacturer to make the item. So from a pure business standpoint you're getting back more than what you pay for. To me, that's value. I would much rather pay $500 for a game console which I know I'll use anywhere from 10-20 hours a week for 5-6 years than say pay $300 for a pair of Air Jordan's that I know costs Nike $10 to make and I know for certain won't last me 5-6 years.