Sony has been historically through the decades, pushing technology to its limits, and in turn leveraging the PlayStation brand to help its’ own technologically superior formats succeed. This is one of the reason why the PlayStation brand consistently draws in the tech enthusiasts, the early adopters, and gets retailers like Best Buy to bundle their consoles with their newest televisions. If Sony had the PlayStation brand to leverage back when they were launching the BetaMax, that format war would have gone in a different direction as well.
People take away the bad lesson from the PS2 and PS3. The mistakes Sony made with both systems was to put their money worth in developing a brand new processor mostly on their own (the Emotion Engine in the PS2 and the Cell in the PS3) rather than simply turn out to ATI or NVIDIA well ahead of time and collaborate with them to offer the best possible processor they can provide. Both the EE and the Cell were outrageously expensive to develop, a nightmare to program for, and I’m sure we do think that the PS2 and PS3 would have been just as successful without them. Without the Cell, the PS3 could have probably launched with a price tag of around $499 for the premium model and come roaring out of the gate.
Blu Ray by itself was an asset for Sony. HDMI was too, the same for Sony. The single investment that they poured into and didn’t pay off for them was the Cell. Yet the PS3, contrary of all the criticism, the obscene launch price, and giving Microsoft’s Xbox 360 a full year head start, is still toe to toe with the 360 in terms of their sales and is beloved by most gamers in the community. There is no need to throw out Sony’s process. All Sony needs to do is optimize the costs to launch their console under a price tag of $499 for the premium model and $399 for the barebones model.
Project Denver would also be monstrous enough to decode HVDs at 4k resolution a.k.a film resolution video, which would suit for PS4. It makes a too much of sense for movie studios to use these HVDs to distribute their films to movie theater than the current hugely expensive spindles they use now. The more movie theaters that use these discs, the more the costs are slashed down and the more viable it becomes for the audience who eventually will become the consumers. Initially, people with projectors in their basements will need those too. Soon after, people with 4k resolution TVs (which will be quite common since that is the easiest way to do glassless 3D at 1080p) will also pen that down on their shopping list.
They could easily bundle the PS4 with a DualMove + Eye HD – A Dual Shock that splits in half into two Move controllers with a projected release date in 2014, $399 for the basic SKU, $499 for the premium model, all without losing any money on each console sold like what they did for the PlayStation 3.