In an interview with Japan’s IT Media, Ken Kutaragi, head of SCE said that the PS3 was” probably too cheap”. He said that the price was insignificat because the quality of the hardware was so good.

“This is the PS3 price. Expensive, cheap — we don’t want you to think of it in terms of game machines. Because the PS3 is like nothing else.

For instance, is it not nonsense to compare the charge for dinner at the company cafeteria with dinner at a fine restaurant? It’s a question of what you can do with that game machine. If you can have an amazing experience, we believe price is not a problem.

When we announced the PlayStation price, it was said to be expensive. Same for the PlayStation 2. However, when released, both had sales that were unthinkable for previous game machines. This is because both offered experiences that could not be had on previous game machines.

With the PS3, you can have next generation game experiences that could previously not be experienced — things like next generation graphics and various services via the network. And, as with the PS and PS2, we believe people who like games will, without question, purchase it.”

The launch will definelty show if people are willing to spend $500-600 on the PlayStation 3.