CHV Lives On

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I can't beleive how many people out there just don't understand where this thing is being placed in Sony's lineup. I think half the problem is that these are all gaming websites, so they just assume that since it's a PS2, that it's aimed at the gaming market.
The PSX is a media hub. It's going to act like a PVR, DVD Player, DVD Recorder (probably for archiving recorded shows), it'll probably have internet features similar to WebTV. It's got a giant drive so Sony can push content, it's everything that Sony told you the PS2 would eventually do.
Let me repeat that. Sony told all of you that the PS2 would be doing all of these things, even before the PS2 launched. The trick is, they didn't mean YOUR PS2. They meant the PS2 architecture.
Being a "games console" was the first step in an overall strategy. They always planned on having this device be the center of your entertainment center. This isn't mean to supplant your existing PS2, and you aren't meant to "upgrade" to this. This is not a stopgap between now and the PS3. It's a new application of an existing hardware architecture. It's kind of like the Panasonic Q, in a way ... it's not a "replacement" for the GameCube, but simply another device with the same hardware for a different market segment.
This key is that device is meant to make Sony relevant in the Home Electronics space again. Lately, they've priced themselves out of most markets, and lack of innovation has forced them out of others. Sony Computer Entertainment was the ONLY profitable segment* in the entire company, so Sony wanted to take what was working and leverage it in a meaningful way. The first test was the Linux kit for PS2. If the console's hardware was powerful enough to run a computer operating system, it could probably handle a convergence device. It could, so they did. The PS2 hardware is powering all of the software and operating system in this new device. They have simply made the device play PS2 games because it's an extra "win" in the eyes of consumers ... much like backwards compatibility with PlayStation games was for the intial launch of the PS2. In fact, if they hadn't added the ability to play PlayStation 2 titles, you might not even know that it was the PS2 hardware powering this device. It'll also be a key factor in mitigating the cost.
Speaking of cost, it's probably going to cost $999. Maybe lower, but it's doubtful. Immediately, some of you are going to say, "I wouldn't pay more than $499" for it. You are probably not the market that this device is aimed at. Look at the device. It "matches" their plasma TVs, it can be wall mounted, it LOOKS expensive. This is aimed at the guy with money to burn. But if you think $999 is too expensive, just realize that a 80GB PVR is still about $399, a stand-alone DVD Recorder ( not a computer based "burner" ) is still between $499 and $799, and a PS2 with ethernet is $199. $999 for a unit that can do all of that is a BARGAIN. And for the person that this is aimed at, they will recognize that immediately.
They aren't looking to revolutionize gaming with it, they aren't looking to "attack" Microsoft or Nintendo with it. They are simply looking to move some of the profit that SCE is generating into their other market segments with the convergence device that they had been envisioning since Day 1. So, let's get over all of these Doom and Gloom comments, and let's get over this being the end of Microsoft or Nintendo. Sony is simply branching out with the hardware they've already got, and in a very smart direction.
*And that was only SOFTWARE, hardware was still a "loss leader", as the press reports today have mentioned ... they are finally going to turn a profit on the hardware THIS YEAR!

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