...if Orbis is indeed not backward compatible. That will be a big TURN OFF to potential customers, and make Sony AN EVEN BIGGER LAGGARD to Xbox and other consoles. My guess is that Microsoft and other console makers will wait and let Sony go first in this experiment before making the same risky step, in order to let Sony's try guage customer reaction. Customer reaction will be BAD, and all Sony will accomplish is to drive customers away.
"The former is going to eat into sales. If folks can't play their PS, PS2, or PS3 games on the Orbis, most gamers are unlikely to upgrade right away. Since they've also seen how Sony systems fall precipitously in price over time, waiting is never a bad strategy with this company.
The latter is going to be worse. If the Orbis won't be able to play secondhand games, you may as well just toss them into the clearance bin as overpriced paperweights.
Sony can't be this stupid. Right?
Does it really think that folks will buy a likely pricey system that can't play used games?"
Not sure about the used game issue but backward compatability is no big deal. Never has been. Sure it's nice to have and people say they want it, but it's rarely used according to countless studies and surveys over the years. What's the point if you still have the old machine anyway?
And as far as Sony's prices falling, all tech prices fall pretty much the same since it usually takes them or their competitors to move first and the other follows.