So, we have official stats on the PS3 (it's here: http://collider.com/videogames/news/article.asp?aid=2389&tcid=5). I shall spare you any ranting about said game system and just point out a pretty crucial statistic about the system as a home theater device:
The "Deluxe" system will have an HDMI connector. The "Basic" version will not.
Pair this with the scarcity of the system (there will be, at launch, two million available worldwide with two more waves of two million by March 31st, and half of these are, I believe, the Deluxe) and well...huh?
The scarcity is undeniably a good thing for the PS3. It's what sold the PS2 in such enormous numbers, although I question the intelligence of the strategy this time around (either they are intentionally creating scarcity to promote demand or they're trying to cover up the fact that making these systems is excruciatingly slow: either way, not good.)
But it's undeniably a bad thing for Blu-Ray, a very, VERY bad thing. The entire point was the PS3 was supposed to be the really cheap Blu-Ray player, the vehicle to get the format into everyone's houses before HD-DVD could get in there.
After all, there IS a $500 HD-DVD player with no scarcity issues. The response of the Blu-Ray camp has been pretty much to pretend said player doesn't exist (I'm particularly amused when they said Toshiba had to be losing money on it and the price HAS to go up, considering assembling a PS3 costs $900), but the problem is...it kinda does. It's buggy (about half the players seem to have issues), it's certainly not an impulse buy, but there it is, and it's $100 cheaper and widely available.
Now Sony is saying that not only will the cheap player not hit the market until November, but only half of them will actually be capable of playing back the discs at the quality intended (Sony's DRM downconverts if you use the composite connection), and the other half will have no hope of EVER being a Blu-Ray player since you can't exactly cheaply wire an HDMI connection onto the thing.
I'm not saying this will kill Blu-Ray as a format (although the disadvantages it starts with won't help), but it will CERTAINLY cause problems.