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Bear in mind that the iPad was rumored to cost >$1000 but then launched at $499.

On the other hand it might sense to launch this as a pro-workstation for the usual kinds of task: architects, designers and engineers being able to visualize and interact with models directly in space.

If they can make that affordable and usable for pro designers at every level, (which $3500 clearly would be), they will have a hit.

A consumer gaming device can come later.