Sony does not want to kill off ps2 just yet, its the only thing they have that makes money, so it makes more sense bussiness wise to delay ps3 for another year because ps2 is getting so many big games this year and Sony knows that even those people who get into xbox or rev now are still up for grabbs latter.
About price, by the time Sony is ready to launch ps3 they will have been able to figure out a way to get the cost down to a reasonable point. Sony is actuly better off coming ion later than sooner because if they come out in 2007 they can sato consumers, ps3 is the wave of the future, xbox 360 is just last years model and isnt even as good. And people will beleive it. MS fanboys arent going to stick with xbox once rev comeout, since its oging to siginficantly improve every single area that makes xbox worth owning anyways.
Things are just looking better and better for Nintendo.
As for BRd verses HD-DVD, I dont even care, I am just getting stared building my dvd collection and wont likely ever upgrade to hd or blu ray since I wont likely ever get a HD tv.