The reason behind Sony and MS not spending more on the consoles and selling them for less is a waste. Look at last generation MS spent billions on research and the prototype hardware used in the 360 and while designing it they skimped out on cooling and quality of material to save costs. guess where that lead too nearly 4 years of high failure rates a threat of their product removed from market if they didnt include a warranty after 1st year. MS lost billions in those first few years and didnt start making profit on the 360 until 5 years after release. Sony while they didnt have hardware failures to drove to no profit it was the serious amount of expensive hardware inside like the bluray. Sony built factories for the Cell thinking it was going to be their all in one cpu for all things but it didnt turn out they way.
They learned their lesson of diminishing returns.
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