Sony preps 3rd version of PlayStation 3

OK this is just ridiculous. Sony is completely out of touch with their market. First the scale back on the system itself, then the price point of the PS3, the measly number of units available for the holidays, and the lame games for launch. Now they want a multimedia-oriented version at $1600? I loved my PS2 and was so looking for the next generation. That was over a year ago and things surely have changed. We weren't lulled into buying an overpriced game console why would we be lulled into buying a very overpriced Blue-Ray DVD player. Unless there are some magical specs on this "new" PS3, what could possible justify $1600?

Sony preps 3rd version of PlayStation 3
By Justin Mann, TechSpot.com

You'd figure Sony would concentrate on getting their existing two models of PlayStation 3 into peoples homes before developing a third, but that isn't the case. Sony is looking to introduce a multimedia-oriented PlayStation 3 soon, designed to be a multimedia center rather than as a gaming console:

The “media-centric” PlayStation 3 will feature capabilities of consumer electronics devices and will be more focused on digital media content playback, rather than on gaming. Based on claims reportedly made by

executives of Sony Computer Entertainment Inc., PC Watch web-site reports that the PlayStation 3 “media-centric”-edition will feature anti-vibration mechanism on the Blu-ray disc drive, 512MB XDR memory, more advanced power supply unit and two HDMI connectors to divide audio and video data.
So what exactly makes this more attractive to someone not looking for a console but a media center instead? I'm not exactly sure, especially since the cost of this unit will be even greater than the existing consoles, and the article estimates it could be sold at $1600 or even higher. Personally, I think Sony should concentrate on other issues before expanding the scope of the already-troubled PS3.