Attendees of Sony's media briefing this past Monday came away surprised not only by the PlayStation 3's expensive price point, but also by the fact that Sony seemingly followed in Microsoft's footsteps by offering two different versions of the console. While Sony only mentioned the difference in memory size of the hard drive at the conference, digging a bit deeper in the press release reveals that the lesser $499 version also lacks Wi-Fi and HDMI support and is not capable of reading SD or flash cards.

It's the lack of an HDMI output that has some technophiles a bit concerned since that digital output is what enables the highly touted 1080p resolution. The lower model version would presumably only be able to display 720p and 1080i resolutions via an analog video output, just like the Xbox 360.

Despite this, Phil Harrison, president of Sony Computer Entertainment Worldwide studios, said that he believes the two versions of the console will be producing equally high quality visuals.

"What we should be clear about is that the functionality is identical in both machines," he told the BBC News. "There is no difference in what the machine does. It's just that the technical method of extracting audio and video from the devices is slightly different."

Much like the familiar Microsoft stance of "giving consumers choice," Harrison, like Microsoft's Peter Moore in past interviews, said that the decision to offer two different versions was made so that PS3 users will have options. "Some people might be interested in the PS3 primarily and exclusively as a games system, whereas other users might look at it as a multimedia hub in the home, which is games and music and movies and other digital content," he continued. Harrison then added that he would personally opt for the high-end model.

As for Microsoft, Harrison said he doubted Bill Gates' claim that the company would actually be able to sell 10 million Xbox 360s by the end of the year. "I doubt they will achieve that," he commented. "I think the clear advantages of the PS3 will mean that this product is very well accepted in the marketplace. We have a great brand and fantastically loyal consumers."

In a separate BBC interview, Peter Moore then responded to Harrison's comments with the following retort: "I'll throw back at him that I doubt he can deliver six million units from November to March. I don't think it is going to happen. The question you have is 'will they be able to meet supply the demand'? We have learnt that driving demand is fine if you have huge amounts of supply to meet that. It is not easy to do."