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I just realized that the PS4 is launching at a cheaper price than the PS2 if we apply inflation. $299 in 2000 is equal to $403 today.
Apply inflation to the 360's $399 launch price and it would cost $475 today, so actually MS is in line with the 360's launch price, its just a pity that wages have gone down over the past 8 years so that $499 is gonna be a hard sell.