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I fully expect Sony to roll out a $299/299EUR model this autumn - this is the magic price point, the inflation-adjusted equivalent of $199 in 2000 dollars, where mass demand really takes off. Their cost reduction machine is running smoothly, so they won't be taking a big hit on the hardware.

Sony has been carefully preparing for this moment. Not only do they have a blockbuster roster of software available for the holiday season, ranging from MGS4 to LBP and R2, but BluRay has taken off, HDTVs are affordable, and the PS3 has become a true next-gen media hub, thanks to TV and movie downloads, trophies and multiplayer, and user-created spaces like Home. This holiday season should be spectacular...