While obviously the PS3 is the most expensive console on the market, Sony would like to remind consumers that it provides "the most features and functionality out of the box".  We just received this e-mail from them, comparing the price of the PS3 to the Wii and 360, upgraded to meet the PS3's standards:

The 2008 holiday season was an exciting time for video gaming and the Blu-ray side of the interactive entertainment industry, and 2009 promises to follow suit. As consumers continue to invest in their entertainment needs this new year, the feature sets of the three multi-functional gaming systems -- PLAYSTATION 3, Xbox 360 and Wii -- become that much more important to consider.
 
PLAYSTATION 3 has always been about streamlining the gaming and entertainment experience by giving consumers the most features and functionality out of the box, there is no immediate need to upgrade anything to get a rich entertainment experience, as the console comes standard with:

      Built in Blu-ray drive for HD movies and mind-blowing games
      Built in Wi-Fi for wireless gaming and Internet access
      Huge hard drives for storing games, movies, music photos and more
      Free online gaming and entertainment access through PSN
      Ten year's of value with a future-proof system via firmware updates that offer new     services and features

The Xbox 360 and Wii offer a set of features in their own right. However, when you take a look at the feature offerings side by side, there is only one true winner in delivering total value and price.
 
We’ve compared the lowest entry points from each manufacturer -- PS3 80GB - $399, Xbox 360 Arcade - $199, Wii - $249.
 
 
  Functionality:
  1- PS3 80GB
  2 - Xbox 360 Arcade
  3- Wii
 
 Out of the box console:
  1 - $399
  2 - $199
  3 - $249
 
 Wi-Fi:
  1 - YES
  2 - $100 add-on
  3 - YES
 
 Hard Drive:
  1 - YES (80 GB)
  2 - $100-$150 add-on (60GB-120GB)
  3 - Not Available
 
 Online Gaming Service:
  1 - FREE
  2 - $50 per person/per year
  3 - Limited
 
 Blu-ray gaming/movies:
  1 - YES
  2 - Not Available
  3 - Not Available
 
 HDMI Output:
  1 - YES
  2 - Not available in earlier models
  3 - Not Available
   
 Total :
  1 - $399
  2 - $449-$499
  3 - $249

http://www.ps3center.net/news/2100/sony-ps3-is-a-better-value-than-360-wii/

http://www.vgchartz.com/forum/thread.php?id=56027

When I have enough money I plan on buying a PS3 mainly for blu-ray, but also for some exclusives like Ratchet and Clank and Little Big Planet.

Instead of doing advertising based on image and technology Sony should advertise the games themselves; the PS3 commercials that were plastered on TV during the holidays looked cool and marketed an image but didn't really market their games in any unique way. Simply put they're trying too hard to make the PS3 look cool and not hard enough to sell it's games, flash over substance doesn't always work.

PS Fanboys in denial again ...

Already posted

maybe PS3 should launch a bare boned PS3.. 20gigs, no slots, no wifi, blu ray playback locked by remote for $249? coz clearly the VFM proposition isnt working. Its called the recession and "cheaper" is perceived as "value"