Consoles these days need the DVD player anyway for their media, and the cost of the software/decoding hardware for movies is practically nil anymore. There's no reason for consoles not to have DVD playback, and it wins over a lot of those people who are "teetering on the line" about buying into video gaming. As for handhelds, the PSP does not have "DVD" playback, per se. It uses Sony's new UMD media, which are much smaller (they look about the size of mini-discs, maybe gamecube disks) and so not a factor in the size of the machine. These new disks will be able to hold (supposedly) dvd-quality movies and many will be released in this format. You might argue that this capability will make the system more expensive, and it might initially. But, as the capability pays for itself in UMD format movie sales, this portion of the markup on the system will probably go away rather quickly. Hmm...if you say so.