The PlayStation 3 is an amazing machine and he says he'd love to have one sitting beneath his TV, but nor for $500 or $600. That's too expensive he says, even for a machine that features a cutting-edge Blu-ray player.
It might be worthwhile if the PS3 were the greatest device ever for the living room. But its controls are a little quirky for people who aren't PlayStation fans, and it's not clear whether the PS3 will be as good for downloading movies and TV shows as the Xbox and Apple's upcoming set-top box.
Those limitations, combined with the high price, could scare away most of the mainstream consumers building out their high-definition TV setups.
Microsoft — and shareholders meeting Tuesday in Bellevue — should be thrilled. Xbox is on a roll. It helped Microsoft beat sales estimates last quarter, and now the $400 console looks like a bargain next to the PS3.