Sony May Use Downloads To Fight Piracy
Gamaustra reports that Sony may be planning to use game downloads to deter piracy in Asia. From the article: "According to the article, Yasuda is quoted as saying that the 2006 plan of SCE Asia is to construct a PlayStation 3 infrastructure on which software makers can distribute software digitally ... selected developers will get prototype funding from KIPA, and additional post-prototype funding from SCEJ, as well as free technical support and PlayStation 3 development kit rentals. Further online reports have indicated that digital downloads of game material, as currently available for the Xbox 360, should be relatively simple with the PlayStation 3, though details of the PS3's online service are still closely veiled." Kotaku, meanwhile, reports that some Korean developers don't like this idea.
Maybe this is part of how Sony will keep itself from going under.
Build a $800 console, sell it for $500, make up the difference by taking over the IP of developers.
Also, make your console more desireable by promising online titles that you can't get on the X-Box, etc.
All they have to do is hope for developers that are crazy or desperate enough to take them up on the offer.