Phil Harrison and 1up's Luke Smith had a chat about the current positioning of the PlayStation 3, and it makes for some interesting reading. A quietly confident Harrison discusses the future of game distribution online, their attitude towards competition in the console market, and clarifies a few things about the potential for PS3 price cuts. The previous discussion about price cuts was apparently a big misunderstanding. "PH: Well, do you know what [Takao Yuhara] said was, cost reduction, not price drop, and there's a big difference between cost reduction and price drop. So, that I believe is where the confusion came from. Obviously, we are investing our money in making PlayStation 3s cheaper to manufacture -- that's part of our business plan. 1UP: You're not going to pass the savings along? PH: When we can, when there are savings to pass along to the consumer, we would obviously choose to do that. That's the business model. 1UP: Wait? You guys are doing this to make money? Really? PH: That's videogame hardware 101."

An anonymous reader writes "The CBC reports that Canadian Internet service providers are passing along thousands of copyright infringement notifications to their customers. These notices are coming, not from Canada, but from US copyright lobby groups such as the Business Software Alliance under a system called notice and notice. Michael Geist comments that unlike the U.S. takedown approach, the Canadian system is proving effective while protecting privacy and free speech. Downloaders take the hint, and alter their behavior before they receive a more serious letter in the mail."