Engadget just did a review on this sub $500 player and the reviews were positive.

The problem for Sony now is that the PS3 is now MORE expensive than the Blu-Ray players. Consumers who were mainly interested in the Blu-Ray player for less money & a gaming machine to boot are now going to go for the stand alone player.

The advantage of the cheap blu-Ray player and console are gone.

So, if sales of the PS3 tank further, Sony is going to have some real problems. Current estimates of PS3 sales for the WORLD are about 87,000 units in May. That is the worst showing of any console out in the market. Doesn't bode well for a console that came out only 5 months ago.