PS3 could cost up to $500

Consoles with high pricetags means they have the hardware to back it up, chief. You aren't paying more for a console, most computers on somewhat of the same level are still going to run you more if you get them from ANY retail store.

i dont necessarily think that such a big hardware and price jump is the right direction for consoles, at least in my opinion. on one hand, prettier games could lead to shallower games, which is bad. on the other hand, if they keep putting work into the plot and story of a game, while working up amazing graphics, then it could make for the most amazing game evar. one of the downfalls of great graphics is that the better it gets the more little mistakes catch your eye. in snes games, the graphics were the graphics, they werent trying to hide the pixels and they were great, now with the screenshots from mgs 4, the graphics are amazing, but on the borders between colors the pixelatedness jump right out at you, since the rest of snakes body looks so real. not that its bad, just saying that nothing is perfect and that i dont think huge hardware and price jumps are necessary for consoles.