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About the $500 price: The higher the original price is, the quicker it will go down. PS2 was down to 200 within a couple years and down to 150 a couple years after that. PS1s were 200 for as long as I remember until they came out with PS2. It could be that the addition of the xbox helped with the price drop, but if that is the case, I'm guessing that by the time I have enough money for the PS3 they'll already be down to 300 dollars.
About the PS2: What ever happened to these upgrades I always heard about. Sure, they came out with the network adaptor, but I also heard that they were planing on creating a hard drive so you wouldn't have to worry about load times anymore.
About graphics: How good will the graphics really be? The PS2 already has awesome graphics, and it's powerful enough that the graphics are still getting better. But you have to wonder that if the same leap in graphics made from the PS1 to the PS2 will be proportional to the leap to the PS3, we'll have to buy high deffinition TVs to get the most out of the hardware.
About waiting: I got my first PS2 in the first week they came out. At first I was content in buying DVDs, but later I wanted a game. After a month of the PS2 being out, the best game available was "The Bouncer" and as cool as it was for the first two days I played it, I came to the realization that it sucked and I wished they had made better games to introduce the system with. I'm deffinately waiting after the PS3 comes out.
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