Exactly.
For a parent buying for their children asking for a 360/PS3, here are their entry options and what they'll be looking at when considering the purchase
$280 Xbox 360 Arcade
- 5 arcade games that don't involve cutting people's heads off, that are games THEY KNOW as 'old people who used to play pong back in the day' (Uno, Pac-Man + Boom-Boom Rocket, Feeding Frenzy, Luxor 2)
$400 Playstation 3
- Comes with Spider-Man 3 on Blu-Ray
For Sony to compete with the Arcade box, it'd take a $300 PS3 with Ratched bundled in. Perhaps next holiday season something like that would be economicly feasible.
I throw a lot of stuff out there for debate, but from a mass market perspective, Sony is still missing the mark here. It's not like this SKU has been a surprise either considering it's been leaked for months.
IMO what all of this really means, is Sony is forefiting a 3rd holiday season in the 'budget' demographic. I don't know how big this demographic is, but think it is safe to assume it is critical for mass market success. They didn't participate in the first year, the second year they had a surplus of consoles at the initial launch price, and year 3 they've rearranged SKUs to cater to lower high-end purchasers but still have nothing for the parents looking to buy a new console for their kids.
I never liked the core offering, it was just kinda 'there'. This one has a lot more rhyme and reason to it.