[sperry]

I agree with what you're saying, but I think in the short term Sony's learning a lesson: hardware specs don't sell the system, the games do. Look at the Wii... the lower entry price coupled with the awesome library of fun games and the new interface that brings non-gamers to the system means the Wii's are still flying off the shelves.

Sony may eventually make money off the deal, but Nintendo is already raking it in now.

And the blu-ray drive on the PS3 is the biggest problem with the system. Sure, it was a bid to lock people into the Sony standard, but they really could have just sold the system for $300-$400 with the drive as a $300 option and lost less money on the system, while selling a ton more units to expand their sales base for games. Having the blu-ray drive isn't going to make the format widely accepted because people simply aren't buying the PS3 in large enough quantities for it to make a difference. Everyone's waiting for the HD-DVD/Blu-Ray combo players to come out, simply because no one wants to pick a standard, nor do regular people like to watch moves on their gaming consoles.