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RolStoppable said:
You forgot peripherals which have higher profit margins than the console itself and its games.


Very true.  I actually thought this was a MAJOR business flaw when Nintendo announced Wii U, saying that existing Wii controllers could be used with the system.  Such lost income.  If every Wii U owner had to buy a secondary controller with a $25 markup, that's a pile of extra cash.  Wii Play made Nintendo a boatload.