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The software that follows is something that probably would only sell for like 5-10$ (and probably cost them nothing to develope), and the cardboard is like 1$. Nintendo made mad profits on each sale. 

Nintendo are some greedy mofos, they could have priced this at 20$ and still made hefty profits on each sale.
As is, lobo feels like being ripped off at its current prices, if it was like ~20$ Im sure they would have sold like 10 times that amount.