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Did the guys at N-Phile or GCAdvanced actually SEE the Gamespot headline or are they just going on some forum members say so?
I don't know.
But $350 just wouldn't surprise me. A year ago Chris Deering (the President of SCEE) slipped, and said that the PSP hardware would sell (with no money loss) for $450. Since then Sony's only statements have been "that's not confirmed yet", "no, we'll lose SOME money on the hardware, we just can't say how much", and "please stop talking about the price".
If you're losing $50 on the hardware, you're losing "PlayStation money".
If you're losing $100 on the hardware, you're losing "XBox money".
More than that? That just seems unheard of.
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The real shocker as far as news goes is the fact that you'll need a $30 memory card for the games. In all likelyhood its proprietary so you can't use any other cards.
That's Sony's "Memory Stick". They make them for digital cameras, and that kind of thing. The PSP is disk-based, so it needs some sort of memory cards. And Sony decided that we should be using their Memory Stick format. They're expensive, but the ARE really big (and you can get MUCH bigger and more expensive than the basic $30 ones).
If you want to use the PSP as an MP3 Player (which is back on it's list of features again), you'll need to hook the Memory Stick up to your computer to load it up with MP3s, because you can't get MP3s onto the UMD disks.