That was very interesting reading indeed.

The key to success in the console business is to get your box into as many homes as possible, as software title sales are the key profit driver.

Even so, the haircut Sony is giving themselves in the name of hitting saturation is a big one.

Fortunately for Sony, Microsoft and Nintendo, the market is not a truly closed system. Fact is, the number of gamers who identify as hardcore (and as "hardcore" they own two or more different consoles)signify the majority of consumers, versus those who comparison shop and only select one console and stay with it. Odds are, if a gamer has an XBOX360 already, he's still going to get himself a PS3.

Wow - I had no idea they were losing that much. I assumed with the already ridiculous price tag they were trying to minimize loss.

I think the key now will be what the failure rate is in the next week or so. If it's anything noticeable I think Sony might be in for a world of hurt.

"Might be in for a world of hurt"?

They're already in a world of hurt. Recalling 9.6 million laptop batteries erased $429mm off their Q2 net income. If PS3 turns into an albatross because they explode, trasform into a hungry alligator, or just plain-don't-work, then we'll have to re-write the old aphorism, and declare that trouble comes in fives.

Personally, I didn't intend for my own blog to turn into an axe-grinding anti-Sony dogpile over the last month. But like Sony's Jack Tretton said, bad news sells, and the copy for following Sony's trainwrecks pretty much writes itself.

I'm looking forward to covering more positive uplifting topics right away, such as the new Wireless HD Consortium and their plans.

Sony is being criticized for losing so much per console on launch when they actually should be praised for putting that amount of processing power not only at the hands of consumers but also at the hands of capable developers. Yes, there are reports that creating games for the PS3 is harder than for the XBOX, but once they can get the hang of it and exploit the system fully, they'll thank Sony for the risk.

Praised, Mr. Sancio?

Sony's design philosophy is to spend an enormous amount of money to push an otherwise inferior product into our living rooms, so they can leverage it into control of our entertainment lives (via Blu-Ray if nothing else). They may fail because of roll-out issues, unprecedented per-unit price and the Wii-Mote.

For what it's worth, the initial buzz is starting to blog in from the nerdosphere, and it's not pretty:

http://businessopinions.blogspot.com/2006/11/nerds-are-starting-to-weigh-in-on-ps3.html

I will buy a PS3 as soon as the price tag falls to $150 or less. This was the amount that I shelled out for PS2. I am not an early adopter of any sort, but I love great technology on the cheap.

I sincerely hope the unit doesn't die out from overpricing:(. Sony must continue to swallow the loss I hope. It's just like a printer and cartridge or shaving stick and razor blade theory; unfortunately for Sony, they happened to have have made a golden shaving stick/pure titanium printer.

I honestly am rooting for the PS3 for quality graphics if nothing else, but I won't shell out that kind of money ($600!). Sorry.

Sony may have to take that blu-ray thing out of it to make it more cost-effective because I don't intend to stop buying/renting/or watching regular DVDs anytime soon, unless they've figured out how to make the discs for less than $20 and the high definition players for less than $50.

As for making a game console the centerpiece of my home entertainment, I don't think so. I can grab a $500 laptop for surfing the web and internet fun; I already have cable/dish for broadcast and high-def content. My game console should do one thing and do it very well: Play Games!