The PS3 started out with a hefty $600 price tag, but in reality that is a bargain. You get Wi-Fi, a blue-ray/dvd player upconverter package, a game consol, multimedia player with memory card readers as well as a PS2/PS1 package if you got the 60GB Version. With all of this you are looking to spend thousands if bought seperately but you get all of this with the PS3.
But now the PS3 80GB runs you $400. A bundle like MSG4 or the new 160GB version with Uncharted and a free PSN download will run you at $500. Even at $500 you are getting a great deal. Not to mention Sony just released their first wave of Greatest hits with more on the way for $30.