I think bundling a PSP would be an great way to increase the value proposition of the PS3 if the cost of making a PSP was now $50 or less.

I believe the second point still has to be made by the games though. 2009 Sony and the PS3 must have at least 3 games that could not be made on the PS3. The companies that make those games have to be willing to admit that consessions would need to be made for the game to appear on the Xbox360.

If the value proposition looks great enough with the economy as it is and the games are better, that covers two purchase decision questions a person would consider when making they purchase of a video game console.

There is one more thing we could consider here though. That would be marketing. Marketing has been quiet so far and rightfully so. Sony has been prepared to allow just the early adopters buy the PS3 for now. You don't need to advertise to early adopters. We are watching for the next great thing. Now however is the time to grab their own customers. The PS2 owners.

Sony needs to target these people. Find a way to get them to buy Sony again. Stress the longevity of the PS2 and show how the PS3 is even more future proof. How long did it take for Microsoft to overcome the PS2s games, graphics, and value proposition? The ball is truly in Sony's court.

It sounds like their physics engine and level design can not handle their new game mechanic. Level deformation could be used in Red Faction with incredible results. Lucas Arts should have teamed with Volition to use their geo-mod engine.

Still if the multi-player is good this game could succeed.

I liked what I saw from Sony. The showed some great games and some nice exclusives. I am still concerned that they are not taking their competition seriously enough. I love my PS3 and it is great that I can play HD movies as well as games but I have yet to see a game that out shines an Xbox 360 game enough for me to tell all my friends to get a PS3. Quite honestly I am ashamed to say I have told a few people if they are getting a system today and they don't plan to have an HD TV for a couple of years, they should get an Xbox 360 because it is cheaper and the games look the same. In a couple of years HD players will be cheap enough that getting a PS3 just for the HD player will not matter. You can by an Xbox 360 now and when you upgrade get the HD player.

Sony needs to drop the price or they better be sure Microsoft can't release a new system that has better graphics for the same price as the PS3 is when the new system comes out. Even if the new MS system does cost more if the graphics are better MS is just going to keep the momentum and run Sony out of town.

I can see that Sony's goals are long term but there are some serious risks involved with putting out a 10 year system. Regardless of the time frame, Sony needs to get some games out there that truly shine compared to the Xbox 360 games or why pay more for the same thing. Exclusive games only get you so far.

I guess only time will tell who is going to win this war.