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I'm sure its been said before, but I'll say it again:

This new PS3 model is just a BR player. Sony is bringing their cheapest BR player in the form of the PS3. It looses all of these features so that, when people walk into a store and see that they can get the PS3 BR player for $400, versus their stand-alone model of $500(pretty sure), they will go with the PS3. Sony sells more PS3's as BR players. Period.

THATS why it seems like a terrible Game Machine Model.