That's the flaw on your theory why PS3 could do well this holiday. A DVD player (whether regular, HD-DVD, or Blu-Ray) is for family entertainment. Most middle class families (where most sales come from in the USA) do not want an expensive DVD player/videogame console. This day and age the consoles are mainly in younger people rooms. Nintendo is the perfect choice for families because its small, it can be kept next to the home DVD player in the living room where their little kids play, and as they grow into teenagers their trends will change and these youngsters will be moving on to the privacy of their room where they might get an upgrade later on. Neither the XBox 360 nor the PS3 are mainstream items, they are being adopted by the hardcore and some teenagers based on their parents decisions.
