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Machiavellian said:

Also that device isn't a new hardware segment.  Its the same device, re-engineered for a more flexible purpose.

I'm no expert, but I'm pretty sure it's not as simple as just die shrinking a chipset designed for a home console and stuffing it into a handheld. 

The demands of a portable system are quite different than a big box plugged into the mains. You can't just use the same RAM, for instance. You'd have to change the hardware to the point where it wouldn't be "the same device" any more.