Yeah but... you forget that the XBox was released 3 years ago. The technology is old and doesn't cost nearly as much to make as it used to. Same w/ the PS2.
I see it as.. there's no new technology here. Like I said, PSP is a portable PS2, which itself is 5-6 year old technology. They're just making it smaller, and considering how old it is, it shouldn't be a problem.
4-5 years ago, I don't even think the top of the line CPU broke 1ghz. If it did, it wasn't much beyond that. Look at the technology today.. almost bordering on 4 ghz. Hell, my laptop that's 2 years old has an Athlon XP 2100 in it. I'm sure that could easily be shrunk and put into a PDA sized device of sorts without any additional cost of what the big was one a few years prior.
The DS is cheap, of course, because the technology in it is almost 10 years old (N64).
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