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The initial registration cost of .xxx is high, however if you create a valuable web property on that domain then the registration fees should become fairly insignificant.
From the ICM Registry position, they're making as much money as they can out of the extensions, it's obviously set at a price some of the market will bear.
From the Registrant's position, it's just another business cost, if you're making money then it's a tax deductible expense so in the end, the cost of registration in real terms is offset by that tax deductibility.
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