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ElGranCabeza said:

How is Steam going to work on PSN anyways? One unified account? Have to create a sub account to use Steam, a la Konami with MGS4 (poor solution IMO)? Will any of Steam's catalog games work on PS3 (highly unlikely)? Will new Steam games going forward work on PS3? I really see it as only having to create a sub account to be part of "the Steam awesomeness" and being more of a pain in the ass than anything else to be honest.

This is a good question, and I'm interested in seeing the Steam integration as well.

I agree both that Steam is pretty cool and that consumer demand drives the price of services.  The reason the PS3 cost what it does today, is because not enough people were buying it at the price it was.  The reason the 360 will eventually drop in price again, is for the same reason, etc, etc.

Unfortunately, a crap-load of people ARE paying for Live even at it's current price, so it's unlikely to ever go free (me included....doh!).  In fact, I'd agree with others in this thread that this a revenue stream that neither Sony nor Nintendo will ignore for too long.