what is sony playing at?
It seems to me that Sony is marketing the PS3 to the more established (or "hardcore" if you will) gamers who are looking for an immersive experience they have never seen before.
The Playstation 3 has more processing power than any desktop computer I have ever seen, not to mention the only gaming system with
True (ie. 1080p) High-definition video output for the maximum possible resolution of any TV today. Combine this with a blu-ray player and you have the most powerful consumer computer AND the best, cheapest Blu-Ray player on the market today.
By comparison, Samsung's Blu-ray disc player retails for $999 (in Canada). The PS3, which contains a Blu-Ray disc drive and will play Blu-Ray movies in full high-def just like Samsung's player, retails for $650 (again, in Canada). Anyone who wants Blu-Ray movie capabilities would certainly consider a PS3.
Next come the games: the playstation 3 will be shipping games that have huge fanbases already. The PS3 promises an amazing gaming experience with games like Gran Turismo 5 (next year as far as I know) as well as a host of games that will demonstrate the true power of the PS3. In short, the PS3 is a technological marvel for consumers and the technies among us are eating it up! it's still cheaper than a high-end gaming computer and, let's be honest, there haven't been that many good PC games coming out lately. The PS3 may start to eat into the PC gamer market as it will be a more stable (hopefully), cheaper alternative to online and offline high-end gaming for a number of years.
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Compare this to the Wii, which is marginally more powerful than its predecessor, the Gamecube. The Wii appears to be targetting the mainstream video game fan who likes to spend a few hours a week messing around with his or her games and having a grand ol' time. Wii isn't concerned about top-end HD support nor are they concerned with competing with the X-Box 360 or the PS3 for "who has the most powerful gaming console?"
As a result, the Wii was able to maintain a reasonable price for its market (I think I read $250 as the retail price), not asking everyone who buys a Wii to also buy a home theatre system to make it work to its full potential. The PS3 on the other hand, strongly encourages the use of an HD TV and a surround sound audio system. The Wii seems to be concerned mainly about playability and finding its own niche in the game console market. They don't Want to be a PS3 clone. They want to be themselves, just as the PS3 wants to be itself.
Now why would a Gamecube owner upgrade to a Wii if it doesn't offer a huge technological boost? Well, the Wii is significantly more powerful than the Gamecube But this difference is no where near as significant as the difference between the PS2 and the PS3. Let's look at the price comparisons for a moment:
The PS2 costs about $120 now.
A Gamecube costs about $100 now.
A PS3 costs about $650. 650-120 = a $530 increase in value from PS2 to PS3
a Wii costs about $250. 250-100 = a $150 increase in value from Gamecube to Wii.
What am I saying? The Wii isn't the huge step into the technological future that the PS3 is, but it isn't trying to be. The Wii still looks and behaves like any old game system, minus the new control scheme and other minor enhancements. The Wii isn't trying to intrude into the home theatre enthusiast's world as the PS3 is. The Wii, on the other hand, seems to be content remaining a gaming system: aka. An entertaining gaming experience where the average gamer can pick one up at a local store for a reasonable price, take it home, hook it up, get their friends to buy controllers, and have a blast in anyone's home.
While the PS3 is fully capable of doing that as well, I feel that the PS3 is not Designed so much for that purpose, at least by the way it's marketted. The PS3 seems to be trying to break the barrier between the gaming world and the home theatre/HDTV world. The Wii is simply trying to expand the Gaming world itself by introducing new concepts for How to control and game and how to enjoy a game. The PS3 is fully capable of doing that as well, but it better be, considering the cost!
I honestly think, for most people, the PS3 is overkill unless you happen to own an HDTV or are
Serious into games! The difference over the PS2, I don't think is worth the immense cost. On my 33" CRT TV with cheap ol' speakers and a small space to hang out with friends, I'm getting a Wii, if anything. I may even stick with my good ol' gamecube and PS2. We'll see.

The upgrade from a Gamecube to a Wii seems to be the interest in playing the 'upgraded' games (like Smash Bros Brawl) and the new control system (and updated graphics). The Wii is basically a "lite" gaming system for those who want to keep up with the latest games but don't feel that the PS3 is worth the money. The PS3 is for those who consider the gaming experience provided by the PS3 to be worth the extra money compared to the Wii. In the end it's personal preference but I don't see the true value of the PS3 compared to the PS2 or the Wii, at least not yet. B)