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It seems to me like Photon is 'winning' on the price front and ease of programming and of course the cheap wifi connection.

I realize the cloud portion (even the local cloud server) could be considered a disadvantage, but what about things like ability to drive dc/stepper motors or some exotic sensor? Perhaps not enough analog and/or digital pins? etc..

One disadvantage I can think of is the lack of resources whereas the Arduino has a ton of references online with working with all kinds of motors and sensors.

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It's horses for courses. The Photon fulfils a different need to the Arduino. Use the device that best fits what you want to achieve. – Majenko Oct 3 '15 at 20:41
    
Arduino has never been inexpensive; once you are willing to consider alternatives there are many having more capability, and some selling for less than half of the price of the photon. For a one-off, effort is a substantial consideration, while for a project you will use in volume, how the price decreases as you start buying in volume matters a lot - Arduino almost wins there, as you can use the inexpensive bare chips on a custom design, while with photon you may have trouble cutting out the "particle" middlemen. – Chris Stratton Oct 3 '15 at 22:08

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