The PS3 will not be for the casual gamer. It will be for the person who loves to play games and does so nearly every day.
Go price what it costs to build a solid, high quality gaming PC. It's hard to do for less than $1800.00 and easily can go above $3000. I'm talking hard core gaming machines.
The PS3 will be a hard core machine AND a Blu-Ray player (not to mention other goodies). I was expecting a price point around $700 myself, which will still probably be at a loss for Sony.
If you don't want it, don't buy it. If you want it bad enough, save up for it.
This isn't targeted at the 13 year olds anymore, it's targeted at the post-college grad, working young adults who grew up as a gamer and continue to be. I personally prefer gaming to most television broadcasting (not including sports) because alot of TV is pure crapola.
Gaming on the PS3, in 720p/1080i/1080p is going to be so fricken sweet on a 50"+ HDTV, and the games, once the developers de-mystify the machine, are going to be mindblowing.
This isn't ATARI or Nintendo or Genesis people. This is the cutting edge machine to make people drool. Yes, costs will eventually come down, but probably not for 18-24 months or so. If the cost is too high, buy a 360 or stick with your PS2.
No one is putting a gun to your head to buy this. I don't understand the anger around how much this will cost. Cutting edge processing power and video capabilities cost a ton. The best Video Cards on the market today are in the $600.00 neighborhood...and that is JUST a video card.
C'mon people.