I think Microsoft made the wrong move with their console idea, but the price prediction for the premium 360 was originally $300, so I am willing to bet that Sony is not going to deliver on the $500 price, also I remember reading a quote somewhere from some famous Sony person (sorry, I am not good with names) where he said, "I want people to want to work more hours to buy the Playstation 3." In Japan paying tons of money for stuff is not unusual and Sony works on Japan first, so I am willing to bet that it is going to be more around $700-$800 with all of its features. And while I intend to buy both systems, there are not alot of people that would want to pay tons of money for a system. Though to sum this up, yes Microsoft has shot themselves in the foot, but the PS3 still has plenty of more opportunity to screw up on its own so don't go reserving anything yet.