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fkusumot said:

What they are going to end up doing is selling an expensive Blu-ray player that has some added functionality. If they could do that and sell a bunch of players people would buy movies for they would be quite happy. If they have to choose between having a successful Blu-Ray player or a successful video console they will pick the former and this move is more confirmation of that.

 Actually they will end up with a very inexpensive Blu Ray player.  Quality to cost, the PS3 is about as good as it gets for a Blu Ray player.