Sony doesn't have its priorities right on any front. Console is still too expensive, Blu-ray releases (especially from Sony) are very pricey, ignoring the current global economy all together. Now the PSP Go will be $250, which buys you a repackaged, old technology with a solid state drive (which isn't expensive in bulk).
Some things can't be helped, but Blu-Ray prices can be, much easier than hardware can. Drop the prices sooner or later, lest be crushed by the growing digital distribution market. My friend bought a 360 on the ground that it had Netflix streaming on it. Nobody cares about individual download movies, especially the small collection that Sony has to offer. Even though my friend (despite my warnings that he needed to get a gold account to continue his Netflix streaming (he did and uses it just for that), there simply isn't a convenience there on Sony's side.
I'd buy more Blu-ray movies if the price was better for the films I wanted. Games have priority, but being able to drop the price of the movies will help. If manufacturing costs drop on physical medium's side, games could, potentially, be sold cheaper or be more profitable for development studios to work with. The worst thing about Blu-ray is that not enough studios are taking advantage of the room on the disc. Include more media per disc and it will push consumers to buy it over a download (legal or otherwise).
Of course, if 1080p sets start to come down to a more reasonable price, that would certainly help the movie and game industry a lot more, mostly in Sony's case. I'm still waiting
