Isn't it naive to be assuming that this new boom in gaming won't be affected by the credit crunch? It used to be the case that gamers were male, 18-30, and were more likely to go without food to buy and play a game than not. Now that gaming is moving more mainstream and into general family economies, it becomes a luxury which will be removed if penny pinching is required, just like other luxuries. "As long as we can generate excitement" - hmmm: can't pay me mortgage, but I'll buy this exciting game.

I guess this x-mas will prove what happens and who is right and who is wrong. My take on this is Sony being clever, Xbox 360 being very cheap is a tempting offer for many, the Wii being popular as per the usual will sell given its price and popularity.
The PS3 being at its high price point however has the most technology built in so now making it more of a luxury item this x-mas but means a PS3 at £300 is a lot of money for many which could result in getting less gifts as apposed to say a £160 premium Xbox 360 which you have plenty left over for games as well.

I think that, for the market Sony actually wants, the price helps the PS3. It has value, it has a lot in there for the money including several technologies that are not in the closest rival the 360 - wireless and Blu Ray.

Blu Ray is becoming big - look at HMV and Zavvi doing 2 for 30 and including new releases, look at the sheer numbers of Blu Ray titles coming out and the range that is out there now - Disney are launching 5 key classic titles next Q1+Q2 and they only comitted to DVD when they were near certain it was an established format.

PS3 is a premium product which makes it desirable - 360 is devalued and has technology missing or older technology, plus still plagued by reliability issues.

Credit Crunch WILL hit gaming, it already is - BUT the retail industry is already set up to take this by the use of trade ins, offering cash for goods etc - it adapted already to give people choices as to how to obtain the items they want. If I'm a retailer with videogames that doesn't offer trade in, price matches, preowned, then I'd be worried right now - everyone else can ride it if they are part of a chain. Indies I guess are less well placed to do this.

Time will tell - if any of the big three is most effected then sadly its going to be Nintendo because I feel the demographics they have opened up are most likely to be feeling the pinch or to depriorotise games over other items.

@3: "it has a lot in there for the money including several technologies that are not in the closest rival the 360 - wireless and Blu Ray"

Several? You list 2, what are the others? You could also argue that out of the box, the 360 offers technology only available at extra cost to a PS3 buyer... rumble, chat capabilities, HD capability with the leads in the box.

You buy litte Freddie a PS3 and a Blu-Ray movie this christmas and watch as that excitement disappears when Mummy and Daddy realise, that this overpriced film, suddenly needs a new TV and a new set of display leads before it will work.

"PS3 is a premium product which makes it desirable - 360 is devalued and has technology missing or older technology, plus still plagued by reliability issues"

I'm sorry, that's simply fanboy nonsense. You clearly don't understand the technology and think that more = better. The PS3 is the typical Jack-of-all-trades and as Japan are proving (just as they did with the PSX), it's not impressing people like the "alleged" older technology is.

Gaming is all about getting the hardware into the hands of the gamers so they can play the latest games. How can you do that when Sony were telling people "PS3 is so good, you'll have to work longer to be able to afford it". And the reason for that is they "forced" gamers to buy hardware that gamers simply don't need, in order to get a gaming experience no better than what the competition offered.

Sony said HD starts when PS3 arrives with "TrueHD". So how many games up to now have run natively in this so-called "TrueHD", 2, 3??? It is in fact this "premium" console that has been getting bad press for running in lower than normal HD resolutions, never mind TrueHD.