See, when I think of a $120 AAA I think think: "so how much should the console be costing?" Are parts so cheap that with the purchasing power of a megacorp you can make a $400 console economically? I know consumers can build similar Steam boxes for not much more - so maybe. But it could also be that Sony/MS know they will make so much from: -Digital games retail -Network passes -Update fees -Microtransactions (like avatar clothes) -Entertainment streaming (presumably they get some value out of linking us up to Netflix and Youtube and Twitch) -Ad revenue (there is usually a moveie ad on the XBL homepage... which someone is paying someone for) etc that they can afford to sell their platforms cheaply to entice in customers to use a cash cows.