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"That's sure an expensive GPU for a reduced and overclocked Flipper."

Compared to estimated 140$ for the initial cost of the GPU in 360/PS3 its a steal . You have to remember that you will always need to pay high initial cost for custom chips like that and they use some pretty expensive RAM, I don't think that all of it is included in the 7.9$. Besides I think the differences between Wii and Gamecube are primarily located in the GPU which has a Gamecube mode and some Wii extensions.