ps3
Blu-ray player from Sony. Also capable of playing videogames. Sony expects the average consumer to spend at least $500 to watch overpriced HD movies on a format that will almost certainly fail (see: Betamax, UMD).

Sony succeeded with the PS2 because it had mass appeal. You weren't required to own a $3,000 HDTV and $40/month Internet service to enjoy its full capabalities.
My friend: I want a PS3 but without the Blu-ray. It's too expensive and I don't need it.

Me: Don't worry. You'll still be able to play Grand Theft Auto 4 and Madden NFL 2008 on Xbox 360 for half the price.