Brilliant. Consumers want a PS3 that cannot play any existing PS3 games. Want to rent a game, buy used, or borrow from a friend? Nope, cannot do that. Just buy new. Watch a Blu-Ray or DVD, no. Oops, my 4 20GB games filled my hard drive. Better delete them to make more room.

@Paperdiego

Yea, you can play every ps1 game.

No ps2 games though.

good luck with that it would be me a month to download metal gear solid 4

i really dont understand how they will manage to do their games,comon people how owne a ps3 with bluray will buy a blue version and the others dvd version how?????
lol its boring

hell no its not the answer, psn is not even up there to support that kind of good content yet ( not enough movies tv shows, limited choices, not enough games on psn ) All the good games are disc based. BTW the 360 has that $199 console, and it still doesn't see the number of sales that wii does. Regardless, wasn't blu-ray the selling factor for ps3, why scrap it?

Looks like the dumbest idea I have ever read.

This is why they might try it.  The Wii looked like a really dumb idea on paper to them.   

Correct me if I'm wrong, but given that such a PS3 would be unable to play any PS3 games other than the ones small enough to be loaded onto PSN, wouldn't it be more a suped up PS2 than a PS3? Put the PS2 graphics synthesiser back in it, and tada, a suped up PS2 capable of, umm, playing PS2 games scaled up to HD, with Divx/Xvid support. It'd still be a epic flop though.

That site in one fell swoop just made it onto my "don't waste your time reading" list. You've saved me some valuable time Snake612 finding out that fact. Cheers

When you put it like that, it sounds like something Sega would have done. I mean that in the worst possible way.

In other words rip the consumers off? Hell no. Sony would be sued if they did this to the consumer. We are talking about America land of suing where anyone sues anyone for anything.
Sony is in a bad financial situation at the moment and this would speed up its downfall from the console market.