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ceres said:

As I said in another thread, the PS2 made a reasonably priced DVD player. The problem with blu ray is that it made a ridiculously priced gaming console.

And there is another problem for the PS-3 right ahead. The DVD had no direct competitors. Since Paramount changed to HD DVD it is highly unlikely that this format will vanish in the next two years. This is a huge blow for BluRay. No "Star Trek", no "Lord of the Rings"? This more or less secures the stalemate of these formats for the moment at least till Hybrid players become more common.

This lowers the value of the BluRay component considerably, because it can no longer be used as a one for evrything machine.