Sure you can.
But it won't go next to your TV, and it won't be black, and it won't play PS2 games. And it's still $200 more than a PS2.
Remember this : no-one understands the consumer electronics market like Sony.
No-one.
Microsoft haven't got a snowball's chance in hell going into this market against this competitor. X-Box is toast. And so, if Sony's plan comes off, is the general purpose home PC.