Ever since Sony revealed its high price dual-SKU approach for the PlayStation 3, the company has found itself on the defensive, trying to convince consumers that the PS3 will be worth their hard earned $500 or $600. Recently at a Tokyo news conference Sony CEO Sir Howard Stringer admitted that setting the price that high is indeed a gamble, but that in the end it's worth it for the consumer because the PS3 is "future-proof."

"The price of the PS3 is high," he acknowledged, "but you're paying for potential."

He continued, "Obviously, it's a higher-risk strategy -- as all new inventions are -- but if the PS3 lives up to its total potential, then I don't think anyone will be worried about Nintendo or Xbox's cheaper price."

The problem for Sony, however, is that consumers may not see the "potential." This holiday season, when the Xbox 360 core pack can be purchased for $300 and Nintendo's Wii is on store shelves with a sticker price likely to be $250 or less, will consumers be willing to pay twice that amount simply for potential? The Sony marketing team certainly has a challenge on its hands.

Of course, one of the key selling points for the PS3 is its Blu-ray drive. For many, the PS3 will be their first high-definition movie player. Stringer was extremely confident that Blu-ray would win out against HD-DVD. He said that filmmakers are "beginning to sense, in Blu-ray, that the pendulum is swinging and swinging for a clear reason."

He also noted that movie studios are now realizing that they do in fact need the higher memory capacity that Blu-ray can offer over DVD and even HD-DVD. "This capacity, which seemed too luxurious a year ago, suddenly seems absolutely necessary," Stringer remarked.

Stringer concluded, "Do you go for a cheaper transitional [product], or do you take a chance on future-proof, higher technology which will keep you going for many, many years?"

Sony also recently stated that they expect to sell 100 million units of the PS3 over the long-term, just as they have with previous consoles.