BusinessWeek has an interesting
article discussing whether or not the PS3's multi-function capability (games, movies, web browsing, DVR, etc) might confuse some consumers. The interesting part of the article is towards the bottom and covers how if consumers feel the PS3 is more of a media machine than a game machine they will probably buy more movies than games for the system (something that has already happened to the PSP). I'm not entirely sure if Sony makes any money off licensing the Blu-Ray technology to movie companys but I know for sure that most console makers do get a royalty in the $8-$9 range for every game sold so this is kind of a big deal for Sony. At the end of the day it will come down to how the console is marketed but either way I have a hard time believing that the PS3 is going to confuse anyone or be a gigantic flop unless Sony really screws the pooch with some bizarre marketing campaign.
They also expect the unit to fall into the $350-$400 price range and hit Japan in June with a US release in the fall.