In keeping with the PlayStation business model, PS3 will roll out at a loss for the first six months, then rapidly turn profits on game-license fees. PS3 will be bundled with a selection of preloaded films, TV programs and games and sell for between $300-$400.
Seems strange that this many news tidbits would show up in the Hollywood Reporter, but it is right about time for the Sony FUD[wikipedia.org] to kick into high gear to combat an Xbox 360 launch. There's some good bits in there about Blu-Ray and why Sony thinks the PS3 will win the HD-DVD format war for Blu-Ray.
I'm somewhat inclined to take the date and price information with a grain of salt, wondering if the reporter misunderstood something. But I'll admit they do seem right on the money - I'd expect Xmas 2006 and $400 myself.
This business about "preloaded films" is a bit murkier. That would seem to imply a packed-in hard drive, whereas a PSP model "here's a shiny new Blu-Ray movie" seems more likely to me.