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lultor, Microsoft and Sony aren't selling their consoles at a loss because they love you. They are trying to recoup their losses via software, accessories, and downloadable content. Whatever we're willing to pay for a console is, at the very least, what it's worth.

If System X costs $1000 to produce, sells for $700, and I refuse to buy it, it's not worth $700 to me.

If System Y costs $150 to produce, sells for $200, and I'm willing to pay that (and then some), which company did a better job?