If you look back at previous lifecycles, like PS2 versus N64 [sic], we have lots of data that suggests that lots of people bought into N64 as their entry level gaming device, and were happy to upgrade to a more powerful machine later in the lifecycle when the price point was right for them.
I think we're going to see this later on PS3, and the fact that it's a Blu-ray player as well and that there's a [greater] wealth of network based experiences than are perhaps available on the device they already have will add to the proposition. I think that will definitely be a factor in the marketplace. - Andrew House SCEE
I don’t understand where he is coming from at all.