The royalty fees like around £10. Microsoft isn't cheap like Nintendo who offer £100 worth of hardware for £300. They are prepared to make a loss on the console and rely on game sales to make a profit.
And bluray drives are cheap now.
Those who think the 720 will have practically the same graphics as the 360 (I.E Wii U graphics) might be seriously deluding themselves on every level in some kind of desperate attempt to hold onto the hope that Wii U will be competitive and share the same multiplatform engines as 720 and PS4.



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