PS3 Cheap
The PS3 came out at a high price. Since they have reduced the price you can get PS3 cheap. It is still the same model just discounted due to over production of the PS3 cheap.
PS3 Cheap
Article on PS3 Cheap
The PlayStation 3 is going to start at $500 and $600 for the recent future. It is not just a simple one time hardware cost. In order to get the most out of a PS3 cheap you will need to invest in a HDTV and those start around $500 for a decent set that is going to last you and get your money's worth.

Sony is now asking a gamer who probably paid $200 for a PS2 and played it on a $150 TV to spend around $1200 on a PS3 cheap and a HDTV. I know a lot of gamers and consumers already have an HDTV but it will be years before people stop making, buying and using standard TVs. I understand that the PS3 cheap has some serious graphics hardware that can deliver incredible graphics on in high resolution but if you look at the $600 NeoGeo home system as a reference just having the better graphics is not necessarily a guarantee of total market success and accessibility to the average casual game consumer. I have a hard time seeing the PlayStation 3 and HDTV become as PS3 cheap and assessable to gamers and casual video game consumers in the first and most crucial half of it's market lifespan.
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There are some other options that are better then PS3 Cheap
Sony does have a video game system on the market that has a relativity accessible $200/250 entry in the marketplace and games ranging from $20 to $40 new on average. I have a feeling that having a second game system on the market that could deliver accessible relatively inexpensive games gave Sony the cajones to make a $600 game system that needs a HDTV. The only thing you really need to upgrade and enhance your PSP game playing experience is to get a decent set of headphones, a lunchbox, and a comfy place to sit. The PSP graphic system is hands down the most powerful handheld and can deliver great PS2 level graphics 3d graphics. Sony might want to make a hardware revision and make an updated PSP with a smaller form factor, faster UMD drive, better battery life and a more scratch resistant screen. This could extend the market life of the PSP and re-invigorate the system. Just look at how it has worked out for Nintendo. You don't need a TV or a HDTV to enjoy a PSP and handheld games systems can be accessible to casual gamers that don't want to be tied down to a single home location. I see good things for the PSP and have no doubt that Sony is working on a next generation PSP. I think that parents looking at a videogame system for their kids and potential gamers might find the PSP much lower price point easier to handle than the massive duckets you need for a PS3 cheap.
Ultimately I believe the PSP has a much greater chance of becoming a universally accessible mass gaming platform than the monstrosity that is the PS3 cheap. Of course I am a bit biased because I did help write a freaking book about the PSP.
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