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PS4's only $399, $50 more than the only Wii U model people are actually buying
People are buying it because it's a good deal. Also, the $400 basic PS4 should only be compared in price point to the $300 basic Wii U, as it's not offering you a free game with it, nor is it giving you a 10% discount on digital titles.
Because people don't know about technology. They don't know about architecture, programming environment, API, engines, etc. It's like those people who think the Wii U is barely on par with the XBOX 360 and PS3, yet they fail to consider that the Wii U hardware is 6-7 years newer than the pieces inside these two consoles.
Different architecture means the comparisons are not as direct. The Wii U gets called out on this because its a low clock speed as well as a Power PC.
And what is wrong with PowerPC? It's been used for gaming consoles for multiple generations, and it's one of the most widely used and customizable CPUs out there. Ranging from gaming consoles, to Servers, to Fighter Jets. While the PS4 uses a low end Tablet processor.