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Don't forget retailers still need to make some profit on these too, especially with disc sales in constant decline. A console that costs $422 to manufacture (then ship) would probably need to retail at $500 for both parties to profit from it directly. And that's fine by me. New 'premium' consoles launching at $500-450 and dropping roughly $50 a year to where they're $300-350 when they become the baseline and $150-200 when they're on their way out sounds like the sweet spot to me.

Very curious if the slim could actually launch at $250. Really wasn't expecting that, but if they can pull it off this thing will fly off the shelves (and may actually put a damper in Neo sales).