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tastyshovelware said:
^

But the fact is that the jump seemed so sudden. How do you go from a $300 ps1 to a $300 ps2 (both of which tried to market to everyone) and then a $600 ps3 that is simply about "we can out do the 360!"

Three reasons: first, Sony didn't want to shoot the golden goose, i.e. the PS2, which has continued to sell well, even at $129. Second: $300 in 2000 dollars is the equivalent of $389 in 2008 dollars, adjusted for inflation. So the launch PS3 was a bit higher than its predecessor, but not a huge leap beyond affordability. Third: it was crucial to have BluRay in every PS3, from the very beginning. That drove up costs - as well as the losses of the game division. But it was a brilliant long-term decision. The PS3 really is designed to last ten years, and to bring HD media and gaming to a huge global market (2 billion potential consumers).