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yes, it was expensive but ambitous,  but it was future proof as well, look at xbox 360 inital version, no hdmi (just component video), no wifi (needed adaptor), dvd rom based (hd dvd add was a failure, but nothing to do with ms, however, high capicity hd dvd would be useful in games), compare to ps3 at start, bluray, wifi, standard 2.5" hdd, hdmi, very future proof, esp in recent years as newer tv sometimes don't have component video,