It is the first 64-bit general-purpose computer aimed directly at the home market. There are big questions about how everyone else is planning to handle the 64-bit wall. Sony is trying to take that and sew up the PC business.

It doesn't run just some PS 2 games. When PS 3 comes out, you can bet this will upgrade with it.

At the suggested prices, if anyone offers serious competition, Sony can drop the price very fast and still sell at a huge profit. If you [link|http://www.actsofgord.com/Proclamations/chapter02.html|believe The Gord], Sony probably makes about $120 per PS 2 sold. You can bet they have a nice profit margin on this upgrade as well. If they think they need it, they can reduce prices by a lot. (They won't unless they need to though.)

Furthermore for many people, their playstation comes first, and the computer comes second. For that market Sony is selling a $300 computer which won't cause additional clutter.

If all goes according to Sony's plan, in 10 years Microsoft will be ancient history, along with Intel, AMD, and all of the OEMs. I am not betting against them.

Cheers,
Ben