Xantar, I think you are being a little modest with this comment:
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Blu-Ray technology alone should be worth $200
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Come on, Blu-Ray isn't even mainstream yet. Try to remember when the DVD first hit the market. I remember when I first saw it, it was back in like 1995 or 1996 and the DVD Player was going for something like $700.
As for the price tag, I remember all the experts claiming the PS2 costing pricers hirgher then that. Sony isn't stupid, they will release the console under $400. And that is still too pricey for me. Which really sucks, but $300 is what I'm looking for in a console. And that still hurts me. Stupid Real Life Budget!