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Message: <blockquote data-quote="Lobo Lurker" data-source="post: 2247940" data-attributes="member: 25172">Do a little research (google maybe). The PSP is speculated to cost about $500 to manufacture. Sony is hoping to recoup that cost with thier licensing fees.If you don't know, this is the standard business model for console providers (Microsoft, Sony, & Nintendo).  They sell thier product at a hefty loss in order to get it into as many homes as possible. They make thier money back each time you purchase a game 'cuase a % of that purchase gets paid to them by the game developers/publishers in exchange for the right to develop & sell games using that platform (does that make sense to you? Ever since becoming semi-proficient with Spanish, my English skills have deteriorated and I find that I don't explain things as clearly as I would like).</blockquote>