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Dodece said:

Honestly I think the PS3 will rise or sink based entirely on this sku.


Not at all. Sony is precisely where they planned to be. Sony asked consumers what they wanted, and they said they wanted (1) a lower price, (2) rumble back, and (3) didn't care about BC. To its credit, Sony listened.

The $399/399EUR model is essentially an affordable BluRay player, and HDTVs are finally cheap enough to make a mass market possible. Consumers who want to preserve their PS2 library (like me) will buy the 60GB/80GB model, of course. But BluRay-related sales are going to kick up those PS3 numbers. It'll start small, because consumers are still making the switch to HDTV, but it will build over time.