The PS1 was a significant technological leap, launched at $299, was a successful and profitable venture.
The PS2 was a significant technological leap, launched at $299, was a successful and profitable venture.
The 360 was a significant technological leap, launched at $299/$399, was a successful and profitable venture.
Why are people under the impression that launching a system with a significant technological leap at even $399 can't be a successful and profitable venture. That a new console must either be technologically gimped, prohibitively expensive, or bankruptcy-inducingly subsidised.
Is it the false dichotomy the PS3 and the Wii created this gen? Is it because of whatever creative accounting or poor supplier deals ends up with a loss per unit, Wii U?
And before people bring up "inflation" I don't really thing the CPI applies to such technology.