Actually quite a few people will watch DVD's with their game system. Part of the basis for the PS3 is to try and make it more of a common piece in peoples home theater systems. I do use a seperate DVD player, and will with HDDVD, or Blu-ray more than likely, but most alot will not when it comes to Blu-ray.
By the way, HDTVs are are not that expensive anymore, and they will not be a waste of money when the older sets are not functional in a couple of more years.





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