Everyone here seems to forget that early adopters and fanboys are crazy. They will pay anything to say they own a PS3 and Sony knows this. The PS3 can come out at $1000 and it will still be a sellout in every store. And you will be seeing them on E-bay for well over $1500 I'm sure and they will sell as well. As was mentioned above Sony isn't really trying to win the console war this time around. That is secondary to them. They just want to win the media war over HD-DVD which will land them a lot more money then a gaming console will because it will pretty much be just free roalty money from every blu-ray disk sold.