Playstation 3 Not A Video Game Machine
Gamespot has coverage of a pair of interviews with Ken Kutaragi in which he states that the PS3 isn't really a gaming console. Instead, it will be an all around device that will allow the owner to experience all sorts of different types of new entertainment. From the article: "The PS3 is the product we have been aiming for since the establishment of SCEI...We haven't been creating our [past] PlayStations for the sake of games. Our belief, and the motivation behind running our company, has been to [explore ways of] applying the power of computers to entertainment and enjoyment. We equipped the original PlayStation with a 3D graphics chip, and we equipped the PS2 with the Emotion engine. The PS3 isn't designed to lean towards games. It's not a computer for children. In the sense that our goal has been [to create] a computer that's meant for entertainment, you could say that the original PlayStation and PlayStation 2 had existed as steps towards the PlayStation 3."
The more you focus on trying to be everything to everyone, the more you start to fail everyone in everything. Focus on your core, the stuff you're good at, and you will have those interested in that core beating a path to your door.
Also, the codec comment is a little disturbing. Codecs do matter. If you have unlimited processing power, you still cannot convert a privately held codec due to the DMCA. Also, converting things to the PSP format is what it seems to imply, but I think that's a very small feature in the big picture.
Gonzo Granzeau
"Nothing the god of biomechanics wouldn't let you into heaven for.." -Roy Batty