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TheLastStarFighter said:

-Make the system POWERFUL. They should target 8X PS4, since PS systems generally improve by 8X per gen. Even if it's expensive to begin with, that's OK as long as it can match PS5 and X2 power when they launch. Sell it for $500 or more to begin with and even if market penetration is slow to begin with they can drop the price when rivals come on the scene. They just need to be offering a premium product, both in image and reality.

I think they can and should do these things, but I don't think they will.

That strategy did not work at all for Sony with PS3.  $500 or more just for the sake of being the most powerful is too over-priced for the mass consumers looking for a video game console.  Forget about slow penetration, but the time you start to make a profit, the majority of that is just covering up prior losses.  Look at the losses Sony incurred by releasing a console at $500 or more.  Look at the XBox One's diminished returns by releasing at $500.  Nintendo would rather finish in 3rd in a generation and still make a significant profit in the long run than finish in 1st or 2nd and post a loss or break-even.  If you look at every gen, I think it's clear that $399 is where the majority of consumers generally draw the line at how much they'd care to spend solely on hardware straight out of the box.