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SONY's responce so far is to introduce a $500 version which is going backwards if you ask me. The high rollers have already spent the big bucks especially on the MGS4 bundle though I guess there will be a few more that will trickle in at the $500 price. I just don't think they can make much ground at those starting prices even if they keep adding gigs of space. With the economy at least here in the USA not being the greatest though thank god gas prices are coming down I just don't see the average parents or family paying that much money for a gaming device especially since unlike the Wii only the younger croud will play it. When money is an issue things like extra space and blue-ray are a luxury and not worth the extra dollar for many people.

If you just want to play games period the 360 is the cheapest way to go.