I have to agree with the guy who said the blue-ray drive is just another optical drive. Because to compare the ps3 to a blue-ray player just does not work. To add playback fuctionality on a ps3 the only real differance is adding the optical pick-up because everything else will be handled by the cell processor. As for this annoucement the only thing I can see *not* possible at this point is the DVR because of the source connections the ps3 lacks as far as we know. For the online service some of you need to realize that sony has been working at this for 3 going on 4 years now, and that the guy who headed the quicktime team for apple is now working for sony as head of software. So the online service shouldn't be a second thought. As for cost really the only things that are new in it are the RSX, cell, and ram. Everything else is all "off the self" componets. If you really want to compare apples to apples with the 360, try adding in the wireless network adapter and a HD-DVD drive, which assuming low is $99, you have a 699 machine to get similar fuctions. If sony comes anywhere under that they're golden.