I see, I thought you were comparing the HD-DVD+360 to PS3. Not HD-DVD vs PS3. Makes sense if you already have a 360. Sorry about that.
Not everything is PS3 vs. Xbox 360
I was posting to some fanbois earlier today about how the PS3 does not have a "tard" version. It makes a lot of sense--if you are a consumer who wants next gen video games and are convinced about BluRay. And regardless of the trials BR currently has Sony will easily have 10-15M units installed by the end of 2007. Even if only 10% of PS3 consumers buy/want BR media, that is over 1M consumers. Toshiba/HD DVD are going to have a VERY difficult time getting 1M units installed at the $500 price tag!
Yet people need to take their head out of the sand on the other side of the fence as well: If I own an Xbox 360 -- which many bought based on the fact of its gaming potential as is / pre-HD DVD announcements -- the $200 HD DVD addon is a steal.
End of discussion. If you can get a HD DVD player for $500 or get a HD DVD player for $200, which is the better deal for the price conscious shopper?
The consumers MS is targetting already own Xbox 360's. There is no hookie math "$399 Xbox 360 + $200 HD DVD + $100 (WiFi) etc". True, some undecided consumers may be doing that sort of math, but I think the main point is:
1. The core console is cheaper because it is not standard
2. Those who want it can get a great deal, relative to standalone HD DVD unit cost, for a significant discount
And at this point, based on the quality of the video coming out of Hollywood, there are consumers who are looking at HD DVD instead of BluRay, so any math about "But you can get a BluRay player on the PS3 for cheaper" kind of goes out the window to them. But for others, who are sold on BluRay, the opposite is true.
Ah the complexities of consumer choice.