$499 is a bad price? £350 sounds like a usual price for a new console in the UK... And you don't really need the 60GB version unless you're going to go mad insane spending even more cash through their content delivery system. I know the PS3 standard appeals to me, someone who hasn't really an intention to splash out on too many console games. I actually found this price announcement reasonable, yet i'm probably the person least likely to be buying it!
Full backwards compatability too. Right to PS1.
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