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Dont get the comments in here.

Pachter was right about the pricepoint btw...he was sure it would release at 399. And it did. I was one of the few people who, ever since seing the specs, also predicted this pricepoint.Its a no brainer.

I'm with Pachter on this, and to be honest i think Sony was willing to sell the PS4 at 349 if MS announced a 399 pricepoint. I absolutely believe they are making money off the console ESPECIALLY since the camera is not bundled (which i think was a last minute decision as initially they said the controller was designed from the ground up with the camera). There was almost no talk of the camera at E3 and i think there focused shifted away from competing with Kinect and completely towards catering to the core gamer.

Also to address the hardware costs. If we agree that the GPU+CPU+RAM are the main cost factors in the PS4 then the price pachter is suggesting for cost of materials IMO is about right. People seriously need to realise that apart from the APU setup, the PS4 is running mid ranged hardware from the last generation of AMD releases.

The cpu cores are built from the ground up to be cost and heat efficient. A 7850 equivalent GPU which retails for below $200 is also cost and heat efficient. Factor in that this is an APU setup, which AMD have been releasing for Super cheap (granted the PS4 apu is waaaay more advanced than what we have available now).

The only pricey component is the RAM but thats easily offset by all the other cheap parts.

I also predict than in the next two years AMD will release the PS4 apu (4 core version) at a ~$200 price point.



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