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It's an issue with the complimentary products: games in this scenario.

Why spend $99 on dedicated gaming hardware when games normally cost $40?
Why spend $199 on a tablet that can do more and where games normally go for $0?

See? The market isn't placing value on the hardware, it's placing value on the games. And, it's becoming more and more apparent that it doesn't want games for more than $5.



 
I WON A BET AGAINST AZUREN! WOOOOOOOOOOAAAAAAAAHHHHHHHHHHHHHHHHHHH

:3