Sure, the PS3 is strong now, but is there any reason to think that it's going to be at all competitive with $300 consoles in five years? Let's say that, BluRay aside (since its costs are rapidly dropping), the thing costs about $600 to make right now. You're saying that it's going to cost a significant portion of that to get the same processing power and graphics card in five years' time?
It would also have to deal with the stigma of being old technology. There's a reason why Nintendo didn't simply release a motion-sensing peripheral for the Gamecube - the Gamecube is old news and no one cares about it. The Wii is new and exciting. After about five years, people are generally willing to shell out more money for a newer console.







