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I don't think Sony has any choice if they want a piece of the next-generation pie. They must be aggressive and disruptive. I don't see this as throwing money away. It's a given that console makers always lose money with every console, but if Sony can weasel a Blu-Ray player into the houses of a substantial market, especially in comparison with the HD-DVD market then they have the benefit of royalties to come well over their proposed lofty expectations of the 10 year lifespan for the PS3. Sony's game division holds this card over their parent company and can use it to leverage financial support for their failing console. If, however, they continue to sink into obscurity this next year, they will lose both the console war as well as the next movie format war. Sony has much to gain, but more to lose this generation if they can't move units of the PS3. Expect a rational Sony to drop their price...but is Sony rational anymore?