Blu-Ray within the PS3 is a forced media format and the consumer pays a hefty price for a console with 90% of the game's library similar to XBox 360 and PC.
PS3 has to rely heavily on 3 or 4 stand out on console exclusive games to sell consoles and that is not going to get PS3 into second place. The exclusive games include MGS 4, Gran Turismo 5, God of War 3 and maybe Kill Zone 2(but there are doubts regarding this game due to Kill Zone on PS2 being a flop), Resistance 2 and LBP have both struggled in game sales from their launch.
Blu-Ray should be a secondary function of the PS3. But Sony tries to sell the PS3 primarily on its Blu-Ray capabilities rather than its games. Sony peaked with PS2 and has reached rock bottom with the fortunes of the PS3.
Sony forgets to tell the consumer that the benefits of Blu-Ray are not realised unless you have a $1000 50 inch 1080p HD TV. On anything smaller Blu-Ray looks similar to up scaled DVDs, marginally better to the naked eye and not noticeable to the average Joe six pack.
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