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This is dumb by sony.  Only hardcore gamers would spend $500 or $600 on a game console.  Of course if you are going to spend that much you'll buy the $600 unit.  The problem is the PS3 doesn't sell because of price.  They have now taken one step further from a mainstream unit.  The PS3 doesn't stand a chance of catching on until its $300, 20 gig or 60 gig.