yeah, the whole thing is retarded. Lets just think about this for a second. you are releasing a game machine $200 over the price point of competing machines. one of which is already established, the other has an innovative new concept, thus assuring both of them at least survival. You are the giant currently, looking to hold on to that share, and survive in a world where a large portion, if not most games are bought second hand, and a huge revenue is made from rentals due to the risk of a $60 title price, on a potentially crap game.

Why would you shoot yourself in the foot by alienating customers that much? i really think that would be the only move that could, and would, completely kill the Sony machine. never. gonna. Happen.