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monocle_layton said:

The Scorpio however will enter a difficult market- to an average consumer, why would they go for a $400-500 console with NO game instead of a console for $299 WITH a game? 

The Scorpio isn't a product for an average consumer. MS said this again and again. Of course, even if Scorpio was 299$ with two games Europe would still be a difficult market to enter :P In Europe, Playstation is a synonyme to console.