PS3 has plenty of potential. Do I wish there was no format war? Sure. But it is too early to count Sony out at this point. I do think PS3 is about $100 too expensive. But that is more a function of the rabid gamers who get their sense of self worth by being early adopters. They will pay that much for the systems in limited supply.
Next year, the price will drop. And the system will be comparable to other HD-DVD devices. Once people see that, I think they will opt for a PS3 so that they have the gaming option in addition to high-def movies. I don't see any reason for Sony to release a non-Blu-ray version.
DarkJedi, the reviews of the Blu-ray output that I have seen from the PS3 show it is an optimal playback system. So it is ideal for high-end entertainment theaters. That is why it will succeed. And Sony will be willing to lose some money now to give their format the best chance for future success.
nadio, Joe Familyman is ready for Blu-ray. This season will see a high adoption of hi-def displays. It is already happening.


