Part of me thinks that having 2 SKUs was a mistake and another part makes me think that they didn't take it far enough ...
Unlike the switch from Memory Cartridge to CD or CD to DVD, the majority of games do not require more than 1 disc and only a handfull will require more than 2; this means that the higher capacity format does not bring much of a benefit to games. What this tells me is that Sony should have either gone with a DVD player in the PS3 or taken the 2 SKU model to the next level.
Had Sony released the 60GB PS3 at $600 along side a PS3 with 1GB internal flash memory (for saved games), DVD drive, using software emulation (and so on) for $300 the total sales of PS3 systems would be dramatically higher. Many people would say that the $600 system would sell poorly because the $300 system could do practically everything it could do at a far cheaper price, but I suspect that it would sell at the same rate it currently is an only look like it is selling poorly as compared to the $300 model's sales.
