Kuturagi on PS3: "It will be expensive."

[Reanimated]

biz.yahoo.com has a short story (http://biz.yahoo.com/ap/050721/sony_psp.html?.v=3) up with a few new PSP details and one new Kuturagi quote on the price of the Playstation 3:

The announcements were made during a Sony Computer Entertainment Inc. strategy event which also showcased several games for the company's PlayStation 3 console, which hits store shelves next spring and is expected to compete with new hardware from rivals Microsoft Corp. and Nintendo Co.

No PS3 price has been announced, but "it will be expensive," Kutaragi said.Eek... hope it's not more than 400 dollars.

[Evil Avatar]

Microsoft, "Yippee!"

Pricing the PS3 over $299.99 is going to be like handing Microsoft the gold key to the crapper.

[Reanimated]

Sony doesn't have a choice. They Blu Ray drives are costing a fortune to manufacture.

[falak]

I can't wait to see the UK pricing! :(

[CaptStu]

Even more of a reason the 360 is the way to go. Every time Sony opens their mouths, stupid falls out.

[bapenguin]

Uh oh Spagetti-Oh's!

[NACIONAL]

this was comming a lot time ago

[netcraazzy]

Could this be a bluff? Get MS comfortable with the idea of charging a higher price point, say $399 and then undercut them at the last minute? If this isn't a bluff and the PS3 does end up costing like $100 more than 360 you can bet your arse that a lot of people will pick up a 360.

[Justin_McElroy]

Justin_McElroy on every Kuturagi comment: "It will be inaccurate."

[Reanimated]

This is not a bluff. Stand alone Blu Ray players will be hitting store shelves for over 1000 dollars around the time the PS3 hits. They cost a fortune to manufacture and sony is taking a huge hit by sticking them in the PS3. Plus there's RSX, Cell, the 500 USB ports...

[superherotaco]

Well the PS3 is over 500X more powerful than the xbox 360, (or should I say Xbox 1.5!!! LOL BURN ON MDOLLARSIGN THERE!) 400 dollars is a steal for that.

/Sarcasm

[Atorak]

PS3 WILL retail for more than the XBox 360, so of course calling it "expensive" seems pretty accurate to me. This is no big surprise. No matter what price point Microsoft starts off with, around the time the PS3 comes out, they'll issue a price cut to drop their number below Sony's. Guaranteed. Then, you'll be comparing one product (X360) to a competing product that will retail for more money (PS3). Hence, the word "expensive", especially when compared to a similiar product on the market.

Sony is just preparing the people that are counting on the glory days of $299.99 launch consoles.

[Rangoth]

I think the folks at Sony are smoking some really good stuff if they think people are going to line up to buy a system priced over the magic $300 line. Once again, they fail to learn from history.

[51|RandoM]

The sony machine would be more expensive even if they made it out of cardboard.

MS doesn't care about eating a huge loss on the hardware, long as they're trading it for install base/marketshare. They'll price the xbox360 accordingly.

They don't bone you on stuff like that until after they own the market---at which point you better be prepared to bend over and take it.

[Atorak]

Granted, this will be VERY, very simple, but important for those who think certain products (gaming consoles) should be "Immune" to price increases:


in·fla·tion Pronunciation Key (n-flshn)
n.

1. The act of inflating or the state of being inflated.
2. A persistent increase in the level of consumer prices or a persistent decline in the purchasing power of money, caused by an increase in available currency and credit beyond the proportion of available goods and services.
3.The overall general upward price movement of goods and services in an economy, usually as measured by the Consumer Price Index and the Producer Price Index; opposite of deflation.

The Consumer Price Index (CPI) Average for the year 2000 was 172.20.
The Consumer Price Index (CPI) Average for the first half of the year 2005 is around 194.

So, if the PS2 retailed at $300, today, it would/should cost roughly $339, regardless of how much more the manufacturing is in the year 2005 when compared to the year 2000 (namely, "more expensive parts involved").

:D

[Cha-Ka]

countdown till PS3 drops Blu-Ray feature.

10...9...etc...

[Reanimated]

The sony machine would be more expensive even if they made it out of cardboard.

MS doesn't care about eating a huge loss on the hardware, long as they're trading it for install base/marketshare. They'll price the xbox360 accordingly.

They don't bone you on stuff like that until after they own the market---at which point you better be prepared to bend over and take it.




Actually MS isn't taking that big of a loss on hardware this time. Analyst estimates put their cost to manufacture at 375, while Sony's cost to manufacture is 491.

[Nimos]

Way to promote a product !

[Cha-Ka]

Way to promote a product !

I know...they could've made this sound more discouraging by promising that the console's case will be apolstered in cheap carpeting and the controller will have randomly sized pieces of broken glass embedded in it.

[Nesta]

I betcha $429.99 is the price. Don't ask me how I came up with that figure, it's based on a mathematical equation so powerful, it could suck your brain out right through your nose.

[Reanimated]

I know...they could've made this sound more discouraging by promising that the console's case will be apolstered in cheap carpeting and the controller will have randomly sized pieces of broken glass embedded in it.




I'd almost rather have that than the bomerang.

[Kagger]

I won't pay above 400 dollars

[EL CABONG]

countdown till PS3 drops Blu-Ray feature.

10...9...etc...
I would not be shocked if it was dropped. Some of those usb ports and maybe some other things might go too.

If its around $400 without a harddrive I am not gonna get one when it comes out.
I'm sure I get one at some point after the price drops or sony comes out with a new model with hd built in. I guess I stick with the 360 as only next-gen console
at least for a year or two. Unless they drop stuff to keep cost down and there is more that just one game I want to play when it comes out then I might get one when it comes out.

[Kefkataran]

I'd be willing to pay $400 tops, and that's with a hard drive, thank you.

[thegameguru]

for example...we're looking at developing a nifty settop box with a certain search company..

Just the HDMI "controller" (for lack of better word) from Broadcom (to be fair it does a fair bit more than just HDMI..notably..USB etc..) costs us $67.99 in lots of 10,000+

Sony is looking at dual HDMI controllers that can independently transmit different content on the PS3 <cough!> or so they say....

[*Legion*]

Granted, this will be VERY, very simple, but important for those who think certain products (gaming consoles) should be "Immune" to price increases:

in·fla·tion Pronunciation Key (n-flshn)
n.


Luckily, there's another dictionary word working prices in the opposite direction... :)

com·pe·ti·tion Pronunciation Key (kmp-tshn)
n.

1. The act of competing, as for profit or a prize; rivalry.
2. A test of skill or ability; a contest: a skating competition.
3. Rivalry between two or more businesses striving for the same customer or market.
4. A competitor: The competition has cornered the market.
5. Ecology. The simultaneous demand by two or more organisms for limited environmental resources, such as nutrients, living space, or light.

[Rangoth]

Ya'll are willing to pay $400 for a PS3? Forget that man. That can give me the inflation B.S. all the want, $300 always has been and always will be the magic price point. Sony needs to pull their head out of their butt and just start dropping some of this crap from the PS3 and make it cheaper to make. If they think I will pay that for their bloody machine they can blow me.

[Heretic Machine]

Yay! Sony loses market share and the XBOX 360 and Revolution reap the rewards!

[AspectVoid]

I, frankly, couldn't care less what the price is, since I never buy a console at launch. I'm more then happy with current gen systems and my PC. Two years from now when the systems actually have game libraries of good games and the prices have dropped, then I'll buy them.

[PotatoNinja]

I'll wait until the PS3 hits $250 to pick one up. Whether that's shortly after launch or around the launch of the PS4, dunno. Any company that's hoping to get $400 for a box from me best have one hell of a launch lineup.

[Kamalot]

I think the Sega Saturn launched at $399 while the original Playstation launched at $299.

Just some perspective.

[Reanimated]

I'd be willing to pay $400 tops, and that's with a hard drive, thank you.


Good luck with that. The chance of it shipping with a hard drive are slim to none.

[frederec]

I betcha $429.99 is the price. Don't ask me how I came up with that figure, it's based on a mathematical equation so powerful, it could suck your brain out right through your nose.

I can just see posting that in my office in the math department. I could tell when the calculus students were coming by by the "shlurp!" sound as their brain pops out and the "splat" as it hits the floor. Office hours would be so cool. I've always wanted to be able to justify having a brain bucket.

[Furious Wang]

Granted, this will be VERY, very simple, but important for those who think certain products (gaming consoles) should be "Immune" to price increases:


in·fla·tion Pronunciation Key (n-flshn)
n.

1. The act of inflating or the state of being inflated.
2. A persistent increase in the level of consumer prices or a persistent decline in the purchasing power of money, caused by an increase in available currency and credit beyond the proportion of available goods and services.
3.The overall general upward price movement of goods and services in an economy, usually as measured by the Consumer Price Index and the Producer Price Index; opposite of deflation.

The Consumer Price Index (CPI) Average for the year 2000 was 172.20.
The Consumer Price Index (CPI) Average for the first half of the year 2005 is around 194.

So, if the PS2 retailed at $300, today, it would/should cost roughly $339, regardless of how much more the manufacturing is in the year 2005 when compared to the year 2000 (namely, "more expensive parts involved").

:D

Since you are trying very hard to be arrogant, so will I.

com·mod·i·ty
n. pl. com·mod·i·ties

1. Something useful that can be turned to commercial or other advantage: “Left-handed, power-hitting third basemen are a rare commodity in the big leagues” (Steve Guiremand).
2. An article of trade or commerce, especially an agricultural or mining product that can be processed and resold.
3. Advantage; benefit.
4. Obsolete. A quantity of goods.

Inflation primarily affects commodities - the basic necessities and luxuries of life like milk, bread, gasoline, gold, diamonds and soy beans. Consumer electronics are not generally affected by inflation. Why? Because there are continual breakthroughs in technology that cheapen and streamline the manufacturing process. It is also an ever expanding market driven by innovation, competition, and marketing.

That is why you can now buy for 150$ a PS2 that debuted at 300$. It is also why you can get a relatively large big screen HD TV for less than the same size standard-def TV in 1990. Oh and computers that are orders of magnitude more powerful than Apples in the 1980s. Or fully programmable microwaves for 15$ that far surpass the quality and reliability of 400$ models from 1976.

Sony made a very small profit when the PS2 was released at 300$. They make a very small profit today at the 150$ price point also, regardless of inflation.

The PS3 won't and shouldn't cost more because of inflation. It will cost more because of the technology they choose to put in it at the date they choose to release it. If they wanted a 300$ price tag they could easily reach it by dropping the blueray drive, losing the hdmi ports, including a wire controller instead of wireless, and voila! There you go. Of course, its far too late at this point to do that as the R&D and fab-line costs have to be made back. A 500 dollar console won't sell any better next year than the 3d0 did nearly a decade ago.

At issue here is Sony's arrogance in their belief that they can release a very expensive console and get away with it. They've said before that they expect their console to be so good that people will wait a little longer to save up the extra money needed to buy a PS3. That's nonsense. Except maybe in Japan where rampant nationalism will prevent Microsoft from ever gaining a foothold in that country - but the rest of the world is up for grabs. Sony has been on top for so long they've become conceited and they think that no one will be able to top them. The exact same thing happened to Atari and the exact same thing happened to Nintendo.

[PacerDawn]

Too expensive? What time are you people living in?

In a world where people are shelling out $300-$400 for iPods which are nothing more than portable hard drives, do you really think that Sony is worried? Hell, $450 for a multi-function entertainment system is a STEAL. Especially with a blu-ray drive, when similar units that do nothing but play movies will be going for the same if not more $$$.

IMHO, consoles currently are underpriced, and that's why people are complaining--they want them to remain underpriced.

[Kamalot]

If consoles are currently underpriced (which I don't think they are) why would people spend more for a 'reasonably' priced console when they can get an 'underpriced' console?

If Sony pulls out the stops at $400+ then Microsoft and Nintendo will reap the rewards.

Nintendo is going to sell their console for less than either Sony or Microsoft, which instantly ensures I'll get one. Microsoft's at $300, is already a large purchase that I would have to seriously consider. Sony's a $400 or more, is right out.

[Goronmon]

That can give me the inflation B.S. all the want, $300 always has been and always will be the magic price point.
Inflation == BS ??? :confused:

Edit: I guess by "always", you must have meant "until it changes." Hopefully, at least.

[Kamalot]

I think just by looking at the DS and PSP you can see the difference.

PSP - Loads of extra functions, expensive games, higher price than the...
DS - Backwards compatiable, not the most powerful but full of new ideas, COSTS LESS

This may very well be how the next generation of home machines turns out as well: who is more affordable and offers a large selection of inexpensive games faster than the competition. From everything I see and read the DS, the innovative weakling, is far outselling the PSP, the multi-tasking, multimedia powerhouse.

Could be that being the biggest, most powerful kid on the block does not make you the most powerful.

[Kefkataran]

Good luck with that. The chance of it shipping with a hard drive are slim to none.

Then I won't buy it till it's down to at least "xprice of system +yprice of hard drive" = $400 or less. This is 90% likely for me. Although I did find out that my school grants skyrocketed this year, so who knows, I guess.

[Furious Wang]

Too expensive? What time are you people living in?

In a world where people are shelling out $300-$400 for iPods which are nothing more than portable hard drives, do you really think that Sony is worried? Hell, $450 for a multi-function entertainment system is a STEAL. Especially with a blu-ray drive, when similar units that do nothing but play movies will be going for the same if not more $$$.

IMHO, consoles currently are underpriced, and that's why people are complaining--they want them to remain underpriced.

What sort of argument is this? You can find Ipods starting at 150$. Only 10 million Ipods have been sold. Sony has sold almost 100 million ps2s. An Ipod will probably last you a decade or more. A console will only be supported 5 years or so. People buying an ipod generally already have tons of music to load it up with. People buying a console have to spend an extra 100 bucks or so on cables/controllers/memory cards and then 50+ bucks a pop per game. So that would be at least 600$ for your multi-funtion system. Is that still a "STEAL"?

Oh, and just like how the original PS2 was a pisspoor DVD player, so will the PS3 be a piss poor BRay player. Hell, I bet the PS3 bray drive will have a higher fail rate than the dvd drives on the first batch of PS2s.

[Kamalot]

Oh, and just like how the original PS2 was a pisspoor DVD player, so will the PS3 be a piss poor BRay player. Hell, I bet the PS3 bray drive will have a higher fail rate than the dvd drives on the first batch of PS2s.
Ouch! You know, if history is any lesson, the bray drive in the PSP will suck compared to the standalone players and will break quite often.

Maybe waiting for the PS3 to fix a lot of issues and drop significantly in price isn't a bad idea at all.

I'm amazed they can consider shipping it without an HD or at least some internal memory.

Shoot, even the penny-pinchers at Nintendo managed to fill the Revolution with half-a-gig of memory for people to use.

[fitbabits]

I remember posting a news story similar to this one a while ago (the topic - PS3 likely being expensive) and it getting pulled for some unknown reason.

Regardless, Kutaragi is so full of shit he's in danger of being labeled the new Trip Hawkins (3DO).

[Rangoth]

What I meant by Inflation B.S. is that they are using inflation as an excuse to jack up prices on games in addition to claiming that dev. costs will go up. People, its called proper budgeting. Am I going to pay $60 for a game? Hell no. This next generation I'm buying used 110% except for launch day.

In regards to the whole $400 media center thing...come on, in Japan homes are at a loss for space so having things that do multiple things is greatly desired. In the US however convergence has always been a tough sell. Americans like lots of toys. Nintendo got it right the first time if you ask me, simply give people what they want: something that plays good fucking games cheap.

[Scull]

It doesn't matter what the debut price for the PS3 or X360 or Revolution is. I won't be buying one until about a year after release. Especially true for the PS3, as Sony has had too many horrid first runs for their products. Plus by waiting a year, I get in on the price drops and improved hardware and I have a lot of games to choose from. Being an early adopter is for suckers!

[El-Rodente]

I can't wait to see the UK pricing! :(
and horribly late release dates, don't forget the release dates

not that i care, i'm not particularily interested in the ps3

[Kagger]

Hmm....I may be waiting on PS3 now....I got my ps2 1 year after launch..lasted a good 2 years (I dropped it from a car and ti worked for 2 years total. Wouldn't play MGS2 substance....for some reason. Got DRE's. It broke though after my brother took his TV stand back to college...AV problems).

I will be getting a Revolution at launch. Why? I do not own a gamecube...and I have some catching up to do. That and nintendo systems last a looonnnnnggg time.

[Heretic Machine]

It doesn't matter what the debut price for the PS3 or X360 or Revolution is. I won't be buying one until about a year after release. Especially true for the PS3, as Sony has had too many horrid first runs for their products. Plus by waiting a year, I get in on the price drops and improved hardware and I have a lot of games to choose from. Being an early adopter is for suckers!

Keep telling yourself that, you might end up believing it :p

[Pigeon]

It'll take something *huge* to get me to buy a ps3 anytime early in its product cycle. I had 2 different roommates, and each roommate's ps2 died while living with me. I own one of my own now and I never use it

[IndependentGMR]

At least we know it will have something in common with the 3DO, a high price point.

[Revolutionary1]

This kind of goes without saying, but Sony better have some DAMN good launch titles to justify having an inflated price point, and also some must-have uses for the system in other ways. And if Microsoft gets their wish and has a title like Gears of War or Halo 3 to put up against the PS3, AND the system itself is $100 or so less, say goodbye to Sony's market leadership.

[Dracula-X]

for example...we're looking at developing a nifty settop box with a certain search company..

Just the HDMI "controller" (for lack of better word) from Broadcom (to be fair it does a fair bit more than just HDMI..notably..USB etc..) costs us $67.99 in lots of 10,000+
That's nice and all (and not I'm not trying to make your company's lot orders seem trivial), but Cell production lines will put out 1 million units a month (at least, that's what they're gearing for immediately) - Sony's component orders will be far greater than your lot orders of 10k. Taking into consideration extensive long term contracts for yields like these and we're looking at a price that is no doubt significantly lower than what you're quoting for the HDMI gadgets. To make a more accurate assessment, tell us what Broadcom wants for 1 million units per month, at 1 month, 3month, 6month, and 1 year term contracts :)


Anyways, $399 is a price point I can deal with, if it's a bit higher that launch lineup is really gonna have to work hard to sell me on it...

I've said this before, Sony has been so successful this generation, they can pretty much only go down from here. I personally think they'll still lead the market, but will have lost some measure of market share to the 360 & Rev, it wouldn't be the least bit suprising and is actually a good thing (for us). Stronger competition gets us more games from all sides fighting for our money.

[Zeal]

I don't care who Sony thinks they are, they price that shit over $400 and they're fucked.

[Pnikosis]

Obviously, what Kuturagi is trying to do is to modify (rise) our idea of an acceptable price for a gaming console... errr, no I forgot it's not a console.

[Twigz'N'Berries]

I betcha $429.99 is the price. Don't ask me how I came up with that figure, it's based on a mathematical equation so powerful, it could suck your brain out right through your nose.

HaHa! Now that is funny! (no really, I actually laughed)

But seriously, until they set a price point for a system that is anywhere from 7 to 16 months away, why not stop specualting and wagging fingers over how doomed they will be if it costs more than $399.999998? For all you know, the economy could pick up, we could have a recession...a lot of things.

There is soooo much freaking pointless speculation going on. Why bother? Are you guys really going to pour over every little spec of information (and misinformation) that happens between now and the launch of both consoles??

[*Legion*]

The system's gotta be $299 or less for me to buy it, because I need to turn around and buy the damn hard drive too.

[Heretic Machine]

There is soooo much freaking pointless speculation going on. Why bother? Are you guys really going to pour over every little spec of information (and misinformation) that happens between now and the launch of both consoles??

If you don't want to talk about upcoming game consoles, then go to a site that isn't about discussing video games <.< Or at least stay out of topics that are ABOUT NEXT GENERATION GAME CONSOLES.

[TRiLoGY]

hmmm...

As Falak said earlier.. Im also wondering how much it will be in the UK.. I personally think $400 is good, but only based on the US Dollar - British pound exchange rate (£200 Approx). We will probably have to pay 1.5 or 2 times the price of the US :(

[Karmakin]

Here's the problem for Sony. They won the current generation by two things. Getting their machine out in a pretty open environment, (Sega doesn't count because of the mistrust after the SegaCD/32x/Saturn) and because of that, getting it into a lot of homes. Because of this, a lot of games were made for the system, and that sold even more systems. It was a feedback loop of sorts.

However, previous success is no guarentee of future success. The 360 is going to have the first launch. That will give them a slight advantage (although I suspect that advantage is going to be one of manafacturing, because this holiday season will be light for next-gen stuff. Too much good current-gen stuff out there). Actually, now that I think about it, most of the good current-gen stuff is Sony/Nintendo. So the 360 will probably get X-Box fans to upgrade. So they'll have a good holiday season too.

Anyway.

Then next year, you have the real start of the competition. The PS3 roughly launching against the Revolution. Which system will have the best combination of price, features and games. THAT'S the question. Revolution will win on price. That one is hands down. Until the final specs are released, we really won't know the answer to the other two.

What? Here on EA I have to pull an opinion out of my rear? *sigh*. Ok.

Because the Revolution runs on GameCube technology, it'll be easier to program for out of the gate. Because of this, the first-gen titles for the Revolution will be damn impressive, considering the lower power structure. They'll probably look just as good as first-gen PS3 titles, and probably play a whole lot smoother as well. Not only that, but the gyroscopic (I'm assuming. Every rumor involving the controller mentions gyroscopes) controls will make for the possibility of some pretty inventive play.

Features? I dunno. I'll have to see Nintendo's and Sony's online services first. Because in reality, the next-gen is going to be ALL about the online.

Finally, the ultimate "prediction out of the rear". Nintendo will have the first "killer-app" of the next gen. A puzzle collection. Complete with online play with top-quality voice chat and an easy to use interface. Not a killer app for hardcore gamers, but this thing will get the Revolution moving into homes. I asked my parents if they'd be interested in such a thing. They said they'd jump all over it. And tell all their friends/relatives to get them as well. So they could all play the games they like to play together and keep in touch at the same time.

And that'll get a huge installed base, and then companies will jump all over making games of all types for the Revolution, considering lower production costs and high system coverage....

[thegameguru]

That's nice and all (and not I'm not trying to make your company's lot orders seem trivial), but Cell production lines will put out 1 million units a month (at least, that's what they're gearing for immediately) - Sony's component orders will be far greater than your lot orders of 10k. Taking into consideration extensive long term contracts for yields like these and we're looking at a price that is no doubt significantly lower than what you're quoting for the HDMI gadgets. To make a more accurate assessment, tell us what Broadcom wants for 1 million units per month, at 1 month, 3month, 6month, and 1 year term contracts :)



oh..no doubt Sony will be spending probably 50% or so less for the HDMI controller..

I was merely throwing that out there to get an idea of the base costs of such units.

In the end.. Sony is going to take a loss on each unit sold.. its simply a matter of what % loss Sony Corp. is comfortable taking in Year 1.

I also firmly believe the PS3 will launch at $399.

but...minus Blu-Ray, and the second HDMI controller... and with slightly more modest GPU spec's.

[Nimos]

and horribly late release dates, don't forget the release dates

not that i care, i'm not particularily interested in the ps3

Hehehe by the time the PS3 hits EU the xbox360 will cost half the ps3's price !
:D

[Kefkataran]

inally, the ultimate "prediction out of the rear". Nintendo will have the first "killer-app" of the next gen. A puzzle collection. Complete with online play with top-quality voice chat and an easy to use interface. Not a killer app for hardcore gamers, but this thing will get the Revolution moving into homes. I asked my parents if they'd be interested in such a thing. They said they'd jump all over it. And tell all their friends/relatives to get them as well. So they could all play the games they like to play together and keep in touch at the same time.

And that'll get a huge installed base, and then companies will jump all over making games of all types for the Revolution, considering lower production costs and high system coverage....

Really interesting predictions. I haven't heard too many positive, non-fanboy, well-reasoned Revolution support, but that was good. Considering PS3's likely high cost, Revolution will probably be the only next-gen system I buy at launch.

[Rangoth]

Well, the trouble with the Revolution is that Nintendo has not let out a whole lot of information about it compared to Microsoft and Sony. The truely important information about the Revolution we do not know, i.e. what it will cost and what it will cost to download the emulated games. Both are important bits of imformation. Until then its all just blowing smoke. In theory it all sounds great. Nintendo has always put out great stuff but on their own they cannot dominate, they will have a long hard road but they have a shot. Sony is not making developers happy, that is no secret. Nintendo has a shot at stepping in right now and getting people onto their side if they play their cards right.

[Twigz'N'Berries]

oh..no doubt Sony will be spending probably 50% or so less for the HDMI controller..

I was merely throwing that out there to get an idea of the base costs of such units.

In the end.. Sony is going to take a loss on each unit sold.. its simply a matter of what % loss Sony Corp. is comfortable taking in Year 1.

I also firmly believe the PS3 will launch at $399.

but...minus Blu-Ray, and the second HDMI controller... and with slightly more modest GPU spec's.

Yes I'm a hypocrite.

But there is no way Sony loses the Blu-Ray. That would be too big of a blow to the Blu-Ray technology Sony hopes to make the new standard. They need to get as many Blu-Ray players in as many homes...the PS3 is their best short term way to do it.
The Cell will launch at 3.2 GHZ. Sony wants this bad boy to be relevant several years from now...and they want people to link the power of the Cell chip to the 'amazing' things that are capable with the PS3...that GPU will be the same...if not better than what they posted.