Sony could have cleaned up had they just used the PS2 model. Cut the blue ray out but release at around the same time as 360 with a bit less power but a single SKU at $300. They're brand power would've won out in this scenario and this imaginary PS3 would've had an interesting war with the Wii.
Instead, they got bored of dominating the industry for some reason and got really, really ambitious.
And yeah, a 1K PS3 would've been a disaster of epic proportions. PS3s only sold for over $1000 for a month or so on ebay after they launched.







