Had Sony released a PS3 with just a standard DVD player, would it be doing better? They could have launched a Premium version at 600, and then the non-Blu Ray version at 400

 Consider these points:

 Blu-Ray costs ~ 200 dollars extra per unit because of the new technology

 The PS3 would have been able to launch much earlier (probably March 2006 in order to match Xbox360), and it would have been 200 dollars cheaper, at a friendlier price of 400 instead of 600 dollars. 

At a 400 dollar price point, i think PS3 would have been able to mop the floor with Xbox 

Sure, but the point is moot, since Sony's strategy is to promote blu-ray usage by leveraging the brand recognition of the PS3.

 They just didn't expect PS3 to perform way below expectations.  If they knew beforehand, they'd definitely think again.

I don't think it was a mistake.

I don't know how the movies will sell, but Blu-Ray as a game format seems like a strong way to compete against the 360 with just DVDs.

yeah I suppose you're right. It was a calculated risk-- if PS3 was successful, then blu ray would also be successful and we would be making banners of the sony execs saying "it prints money!"

But as it stands, the jury is still out on Blu Ray, and Sony better hope that Blu Ray wins the format war! 

if ps3 didn't have bluray, i would only buy it if it was 299.99.  if bluray was already the established standard, i would buy ps3 with the first price drop.  but personally, bluray or hd, it's too early to say. so i dont want to even touch this technology yet since once the format's been established, price will drop drammatically for your normal, non-advanced-technology seeking consumers.  i woudln't say bluray was a mistake. but i wouldn't enthusiastically support it either.

was PS2s dvd a mistake... I never had a standalone dvd player sure as hell wont get a br or hddvd standalone since i have a PS3

 Br pretty much has already won... 3 streight months it has taken 70% of the market,hddvd 30%

 dont kid your self... PS3 IS the ONLY reason Br is kicking the shiet out of hddvd, Br wil be a reason PS3 wins in the long run..... perfect long term stratagy.

 HD this HD that... that takes space.... a 50 gig Br disk becomes quite useful. 

nobody ever said PS2 having DVDs was a mistake though, DVDs were well established as the new media standard.  Blu Ray is different, because most consumers still opt for DVDs and not Blu Rays or HD DVDs.  BR may be beating HD DVD, but it's not beating DVD.

i bought my DVD player for like 25 bucks. Between that and my computer, I've never had a reason to get a PS2 for DVD playback.

I would argue with you that Blu Ray's performance against HD-DVD is not due to the PS3's sales. Do you have sources to prove that PS3 is the reason why Blu Ray is winning?

BS nobody said.... lots of people bitched that it was just a way for Sony to sell dvd palyers, PS3 was overpriced becasue of DVD.... Cd was enouth, there was no need for DVD.

 And when PS2 hit the marlet, Vhs was out selling dvd.

It's only matter of time. Some time ago DVD was a new technology and world was dominated by VHS. HDTV is a real deal. Superior quality of picture is clearly noticable - it's not a Mp3 where average custumer have to read about inferior quality to knew about it. Also Hollywood will force this format.