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For myself, I'm a very casual gamer, but my son is more hardcore.  Currently we only have a Wii.  He is interested in getting a 360 or PS3.  But specifically related to the points:

1. PS3 "Slim" was released with smaller design, bigger HDD, and software BC for only $299.

Both: Don't care about any of those except price.  $299 is an acceptable price point.

2. Home and In-Game XMB allowed for integration and achievements both on classic gamercard style and in the virtual home world with trophies.

Both: Don't care, not selling points.

3. HD DVD concedes victory to BD and all HD releases are on BD. DVR ability is released for reasonable price.

Both: We have an SDTV so not a selling point.

4. Sony store adds movies/music to downloadable content.

Me: Movies - maybe.

Both: Music? You mean PAY for music? Heaven forbid.

5. MGS4,LBP,KZ2,FF,GT5, InFamous, and White Knight Story all turn out to be as solid as they are hyped up to be. (ooops and Resistance) AND all made it within the 2008 calendar.

Both: None of these games are of any interest to either of us. 

6. Ports are equal on both the 360 and PS3.

Both: Not a selling feature, although it sure helps.

7. Came with rumble controller.

Both: Better.

8. And KH3 was announed for PS3 (maybe as exclusive, maybe not.)

Me: Don't care.

My son: Yes, if exclusive. 

Would this be enough to make you purhase a PS3? Or has Sony ruined any interest by releasing it initially at such a high price point? 

>Sony ruined interest by focusing on MS fan base. Price is another big factor.  Blu-ray was another deterent (don't want to be forced to play extra for a potentially dead format).  Game library is the biggest single deterent though.  All the games we want to play (aside from Wii games) are either on both HD systems or 360 exclusive.

However, until MS totally eliminates RRoD, purchasing a 360 is also not going to happen.