Sony is smart on this decision. If they want a nice chunk of the market share then they decided to not use the ICT so that you'll have full resolution on an analog HDTV! You were just saved the trouble from having to buy another $2500 HDTV just so you can play your PS3 games and blueray discs. Linky: http://arstechnica.com/news.ars/post/20060314-6377.html
From what I read, it is only that Sony Pictures has decided not to immediately use the ICT for the first generation of BD movie releases. There is nothing stopping any other movie studio from using the ICT, nor is there anything stopping Sony Pictures from using the ICT in the future. Once again, the consumer gets bent over because Hollywood doesn't understand how technology works.
The PS3 will still support ICT. It's just the initial Sony Pictures (different division) that is putting out films without analog downrezing. -hl718
The fact that Sony is still making changes to their BluRay spec implies that the PS3 is no where near production. Hell, one of its main parts is still being designed! You can bet that the PS3 will be delayed until 2007. I am not surprised. Nintendo shot themselves in the foot with the N64, their third console, and apparently Sony is going to do the same with their third console... PS3: Sony Drops the Ball.
I believe that the physical disk specification is done. The problem lies in the content "protection" schemes that they will be using. If that is the case, then only the drive firmware and part of the PS3 software will need to be changed. In other words, they can build the units now, but they need to wait until the spec is done to put the software on.
i just think they need to work on bios and software... nothing else, and they even could make the bios updatable on net or by games if they feel they REALLY need to run
"Nice new world." Just pop in the RJ45 jack and your modchip is disabled by Flash update without any questions automatically. Or PS3 will disable itself when modchips are detected... ("Return to service") hehhe I am 100% sure they will do something like this.
While the wait is due to the final decisions to be sorted out for Blu-ray, I wouldn't be surprised if they are tweaking the hardware spec of the PS3 in the meantime, since they effectively have an extra 4 months. Otherwise, why are final dev kits not being released until June? Ultimately it benefits the developers because they are going to have more time to work on the games for launch day, and we'll get better games as a result. I hope.
The hold up for blu ray is that the manufacters of the disc are not getting a 70% yield rate. I read this somewhere in slashdot about a month ago.