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Kutaragi, hast thou forsaken the gamer?

Normally, rumors should be treated just as rumors and taken with a couple dozen grains of salt, but every once in a while one comes along that is, at the very least, fun to debate. According to Kotaku.com, a reputable source recounted an off-the-record conversation with Ken Kutaragi regarding his motives. He is said to be interested "only in consoles and technology. He does not care about the market." There's internal strife at Sony, since many disagree with Kutaragi in that respect. Not to mention twin-K's stance on the PS3 being for a "specific customer" and not a machine for all people (a la Wii's angle).

Another point of noticeable dischord is an inability to agree on what the PS3 actually is. Some say a game machine, some say a movie player. But no one is saying it's akin to a PC? Hmm. I thought that was a Sony angle, but apparently it wasn't even mentioned. The split in what the PS3 is causes a rupture in the market as well. People wanting a game machine will be put off by the Blu-Ray inclusion and people wanting a movie player aren't interested in a game machine.

Development costs were also mentioned. The source claimed that "many small and medium-sized developers are not making PS3 games, because costs are astronomical. Instead, they are switching to the Wii, the DS and the Xbox 360." More or less, but the last statement from the source claiming everyone thinks the PS3 is a risk is a bit off, since we've mentioned quite a few supporters now and then. Again, grain of salt. What does everyone think?