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I honestly think the peripheral argument is a red herring. The inherent problem lies that the kinect and the gamepad raise the price of the console to where it becomes less competitive, for a marginal benefit in "innovation" when they aren't really changing the industry at all.

Sony's Backwards compatibility was drove up the price of the PS3 and it was arguably more integral to the console as it increased the library substantially. They cut it to be competitive. If Xbox and Nintendo want to be competitve they will trim there fat as well.



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