Spend on R&D?
After all the billions spent on blu-movies-ray ps3, they skimped on all that and just kept it pretty much the same.
3 years old and still doing quite well. Screens good enough, buttons need a bit improving, games are getting better now that developers are experienced at it.
For the late twenty and thirty-somethings its a beautiful machine. better than dated hardware of DS
Now the only question is if Microsoft will come up with a killer product.
Sales of ipods have dropped like a stone since the Zune was launched.
The BSOD on a small screen. Oh wow. Cant wait!