The market timing does not seem to be a show stopper if Sony can be ready to ship volume to the US in time for Christmas 2006. Seems that is still possible despite all the timing speculations. I think we will need to wait for E3 to hear more timing specifics directly from Sony.

Would it be possible to have an entry level PS3 with only a DVD drive? If so, combined with a likely lower processor price, the PS3 could have a relatively acceptable entry model (using the lower estimate and substituting a DVD drive would bring the "cost" to around $545. Assuming even the lower processor price is a bit high this price could be lower. I would not mind paying $200-$250 more to add an optional Blue-ray drive, especially since it turns the PS3 into a full function HD player, a distinctive advantage over the 360 and all the more reason for the PS3 to end up in my den with my where Sony want it to be...

So a key question seems to be: is the Blue ray drive a requirement or could it be an option?