Expensive or not, that is the question. Sony has emphasized from the very beginning that the PS3 is a sophisticated entertainment device based on next generation technology - the aim has not been to make it as cheap as possible. The genuine Blu-ray drive is the most obvious advantage, as the so far announced Blu-ray video players have had price tags around 1000 euros! On the other hand, the initial suggested retail price for PS2 in Finland was FIM 2990, which just about equals €500.

“If we take into account Blu-ray, HD video with drives priced at around 1,000 euros and above, [the PS3] will be a bargain,” Fornay told Europe 1. “If we only look at the game function, it’s true that consoles were usually priced under 500 euros. We will be at this price point ["nous serons dans cette fourchette," or price fork]. It will be expensive if we only look at the game aspect of the machine, but it will be very cheap if we account for the set of technologies that it will integrate.”

Even if the PS3 does hit shelves for 500 euros, that doesn’t necessarily mean American gamers will be paying upwards of $615 for the PS3 when it comes out. Price points vary between territories, and systems are frequently more expensive across the pond.

Source: Gamespot