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Why do people think Sony expect to sell millions? If they sell 500k year 1 at $400 then that's fantastic. If they see 1m units, there will still be people calling it a flop to suit their agenda.
All new tech will be expensive, it's been like that forever. VCR players, TVs, radios, cars, look at anything and it was expensive at one point. It's actually a testament to Sony if they can get this thing out under $500.