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It's some good ballpark stuff with, as has been said, some stuff missing. When you factor in Sony selling at a loss, but retail stores marking it up, it's going to be around $499, give or take a bit. More acceptable than $599 but not close to the $299 "mass market acceptance" price. But that's OK. It will start slow and gradually come down in price and increase market share like the PS3.

In my opinion they should have priced it lower and spec'd it lower and tried to get the mass-market sooner, but I don't think the machine will "fail" at this price. It just makes it harder to become the market leader.