Re:Killer app... err, killer hardware? (Score 1)

From TFA "If the PlayStation 3 is priced below Toshiba's $500 player, it could double as the poor man's Blu-Ray player and undercut Sony's partners." I never really thought about the economics until I read that statement. Imagine the PS3 arriving on the shelves at $499. This would be in direct competition against the XBOX 360 and Toshibas' HD-DVD. The other Blue-Ray manufacturers will in no doubt require substantial margins to recoup development and production costs (some of the players will demand premiums well over $1000). Are Blue-Ray partners willing to sacrifice profits to help Sony wage the their console war? At this point, I think Sony have painted themselves into a corner. They will either have to compete directly against MS (and subsequently piss off their allies) or price the PS3 along side other Blue-Ray manufacturers and virtually assure themselves of slow PS3 adoption. This will get nasty.