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My fellow LVL1'er Brian Wagner and I were hanging out at our favorite hackerspace one night sharing a couple of beers and wondering, is it possible to come up with a design to use sources that can cost $50 or less?
Sumobot
Many readers of this blog have probably either built a mini-Sumobot or watched one in a mini-Sumobot competition.  They are works of art, a tight little bundle of power, sensors and control, with one task in mind: push the other little bugger off the mat.  The designs on these little bots vary widely in design as well as performance.  Did I mention that they can be expensive?  Even ready to make kits are over $100 shipped to your door.  And if you are going to buy a lot of specialized parts online including the right motors, wheels, sensors and a brain can cost you a fair amount.