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If the consumer goes with the 40GB, they're locked out of playing ps2 games, so in order to make there purchase worth the price tag, they're forced to purchase (1)$60 ps3 games, (2)Blu-Ray movies, and (3) PS1 games from the online store. That's where they make there profit. Gamestop's are still littered with cheap used ps2 games, and ps1 games are virtually non-existent there anymore. Reducing the price to 400 results in even more money lost on each ps3 sold. If they want ps2 compatiblity, then you're forced to pay the extra 100/200 for it. It works out better for them.
The reason why the screwed it all up was when they ditched the hardware in the 80GB, and opted for software driven emulation. Now everyone's wondering why the fuck is it excluded from the 40GB when it's software emulation, since that would mean that there's no extra price is incurred to leave it in. Had they left the hardware in the 80GB's when they released it, then the damage control would be much easier to sustain.
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