Sorry, I cannot rationalize throwing down 600 bucks for an entertainment system. I own ONE HDTV and could really, REALLY care less about visual quality of HD DVD and Blu-Ray. Rationalizing the pricing of games in the 90 buck area is also non-existent.
What can I rationalize? $400 for a 360. Comes with more reasonable features ($200 add-on for HD-DVD (seperate), vibrating wireless controllers, component cables, headset, X-Box live subby). The games that are out for have won accolades and Microsoft has gotten their software down pat. Gears of War, Oblivion, Project Gotham Gaming, the inevitable Halo 3?
A bunch of great Xbox games are already at 40 bucks.
Oh and rumor on the street: Gran Turismo HD will come severely crippled. You will have to BUY courses and cars as the basic game itself is just the game engine and a smidgen of cars and tracks.
While technophiles and 'hard-core elitists' will most likely taught the PS3 as the best, ultimately the pricing and reasonable usage of said console will make it a failure.