That answer surprises me none.

If Sony intends the PS3 to have a running OS all the time (which I think is likely) then utilizing one of the SPE's makes 100% sense. Without going into technical talk, it makes it much easier to guarantee stability and resource availability for system demands. The numbers they throw out are likely hogwash, but the idea of using a SPE for the OS makes perfect and obvious sense.

Well, they definitely announced previously that one of the seven SPE's will be reserved for system use outside of any individual game, so that part isn't a lie. Whether or not the rest is true, we'll have to wait and see.

Ok, I'm glad that my "logic" fits with the going story; sorry I didn't know they already announced that, I have not been following the PS3 launch very much.

Just heard on Diggnation that the PS3 will not be playable at E3 for the general public.

If true, I think that sucks. I don't think a console maker should make two appearances at E3 without offering playable content for customers.

Well that's a shocker!

One would think that if it isn't playable at E3 they would have a very tough time to produce enough of them for a global launch in November.

But at $599 you are figuring a loss of about $200 per unit or more. Get 4 million out the door to become the dominant format and you have lost nearly a billion dollars. That's only a small price to pay if you are successful and wipe out the competition....and the competition is first out the door.

It's a huge gamble and maybe they will come away smelling like a rose, but everything about BR and PS3 seems so poorly executed so far that I don't have a lot of faith.

Good point. So we can expect the PS3 to probably be about as good as the PS2 in terms of a movie machine. About what we figured, I think.

That was a rumor that, no surprise here, Spong was pushing a few weeks ago. Interesting how they say that after Sony mentioned numerous times at GDC that they would have playable units at E3.

Of course, Microsoft didn't have any playable units last year with a November launch, so it wouldn't be unheard of.

Sony is clearly banking on the PS3 to sell BR as the dominant home theater format. They may take an initial loss, but in the long run it will pay dividends. There is no way Microsoft can compete with the way Sony is bundling PS3 and BR. If they had waited, they might have been able to have the 360 use HD-DVD, but as it is, you're going to have to buy a clunky add-on if you want to play HD-DVD movies and movies only. The PS3 will play BR out of the gate, no add-ons, and that includes movies as well as games. If they put out the PS3 at $500 with ample supply, they accomplish two things. First, they will most likely blow the 360 away as a serious opponent. Second, they lay the groundwork for eventual BR dominance in the home market. And I have no doubt this is what they're intending to do.

Could it fail? Certainly, just as any venture can. But if they pull it off, they've set themselves up as the entertainment hub for most homes in America in both gaming and movies, and that's a pretty massive feat.

If Sony does do this, it may really hurt them. I seriously do not think they will wipe-out the competition.....I know losing money on the PS3 will HAVE to happen if they want to sell them. I'm kinda following it, but not too much since I'm a 360 advocate...

I might get one with my $350+ credit at GameRush, but now with the Blu-Ray movies not running "as good" possibly, we'll see.

Microsoft has too much money to get wiped out by the PS3. I think Bill Gates is determined to not lose out on this generation's console wars. Of course, if Blu-Ray takes off, it could happen. But I think they'll do whatever is necessary to stay in the game. *pun*

Plus, XBOX Live will help the cause. I have a 360, but I will get the other 2 consoles. Probably will get the Revolution at launch, because of price and the downloadable games. If the PS3 is higher than $500, which it could be, I'll try to wait on it a few months. That will probably be harder to find at launch than the 360, imo.

That all sounds fine, but what if HD-DVD becomes the dominant movie format? Then what?

What if in the next 6 months prior to the PS3 launch, people choose to buy the cheaper $500 HD-DVD player over the $1000 BR players? That could give HD-DVD a nice boost. If I had to choose now, I'd choose HD-DVD simply because it's alot cheaper to watch a high-definition movie that way. If the PS3 were available now, then I'd probably go with BR. But November is a long way off.

That won't happen. The market is not read for Hi-Def DVD. 85% of consumers don't have have an HDTV yet. Of those that do, half of them don't even realize that they are not watching Hi-Definition pictures. The market is seriously confused, still, in regard to HDTV. The Blu-Ray/HD-DVD battle is only going to make it take even longer as it will force consumers to a "wait and see" appraoch. Overall the market has been much slower to adopt HDTV's then many analysts expected.

Also, isn't a single HD-DVD $60? A single Blu-Ray disc is what, $23?

No, HD-DVD is I think SRP = $29.99
Blu-Ray = $29.99 or $39.99

If anyone pays $40 for a movie these days, they are nuts.

*After looking at DDD, some BR discs are as low as $18 while some were over $30....so, that still sucks that prices are high.

Ah, my mistake. I heard someone somewhere say that the HD-DVDs would be $50-$60.

Honestly I think these machines are launching at the exact right time. Flat panel LCD prices are going to plummet this year and with financing deals and increased high def programming (world cup 2006 anyone? wait we're in the US, nobody cares about "football") there will be a ton of adopters this year.

On a personal note, the PS2 was my first DVD player that wasn't my desktop PC. As a result I ended up buying a home theater just to play DVD's on my PS2, and then eventually ended up buying a proper DVD player. I think the PS3 will go the same route of disrupting the market and push people to who were on the fence before to upgrade.

And I'm still sticking with my $299 price point. I think $399 is likely but I bet on $299 a while back and I'm sticking with it!

I thought you were serious there for a second.

I hope you are right, but thus far history has shown otherwise when their is market confusion. Consider Circuit City's failed DIVX platform to compete with DVD. Despite having zilch support, costing more, and only being offered by one store, DIVX managed to drop DVD players and software sales 80% when first announced. Result? Musch slower adoption and market confusion. 2 high profiles Hi-Def choices can only be ugle as far as market adoption goes.

The "magic" price point I have determined using market research models in regards to HDTV is about $500. I believe when flat panel, true HDTV's 27" and larger begin reaching this point the market will shift in favor of HDTV. That point is not for several years however.

I would agree except Sony is trying to accomplish a global launch, which is a lofty goal no matter what.

Microsoft tried to do a global launch, too.

Honestly, I'm shocked that Sony is talking about a global launch after the 360 debacle. Seems like they're setting themselves up for failure on that one.

There is no way in hell PS3 will launch at $300. The games would have to be $75 to make up for that type of loss.

I was at E3 last year and was able to play both Top Spin 2 and Call of Duty 2.

MS did have playable dev kits at E3, modified Apple G5 systems, but they didn't have any final hardware units.

I think the most likely scenario is that Sony doesn't want to show off games yet because they are still fairly early in development. They don't want people to see early versions of games and think that the 360 has better graphics.

Launch games will make amazing progress in the 5 months to TGS and Sony is well aware of it.