"Exactly, and that's where PS3 comes in. With Blu-ray as its announced format, it is bound to attract a lot of consumer attention. Even if PS3 reaches, say, only half of the PS2's installed userbase, that would still be a significant number. Quite sufficient for respectable Blu-ray penetration."
Just a thought, but with DVD penetration mentioned as one of the reasons as to why software sales are on the decline in Japan, wouldn't the pushing of the PS3 as a cheap Bluray player piss off a lot of developers (see also : Xbox 2 as cheap HD-DVD player) who would be looking to get maximum returns on software sales ?
I mean, noise was made by some developers about the PSP being able to play movies, and how that muddies the water so to speak interms of the machines focus.
You are right though, 40 million blu ray players would be a huge starting block. But then this goes back to the point above - if bluray is going to blow our socks off, would people then spend more cash on movies? Then again, with Sony getting cash from both, would they care??