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It was part of the whole Sony arrogance that people would only buy a PlayStation and continue to dominate the market, which meant that game devs would have taken advantage of the bigger storage of blu-ray, that didn't happen

But the real problem with the price was the cell processor. I for one was delighted with the blu-ray, it was really helpful to have a blu-ray player in the house, because I certainly wouldn't have bought one (for some time)

The cell on the other hand, cost tons and did provide extra power if you specifically designed your game around it (see how ND games look like their on a different console to most games), but I feel they could have done something more useful for less money