It will have physical media, if you think otherwise, you are out of your mind

He meant a hard drive. ;)

I have a hard time believing it will sell for 800 euros.

It's possible, but I have a hard time believing Sony are quite that crazy! I would expect a price between £300-400, most likely closer to £400.

I certainly wont be buying a next gen console, but I hope Sony have some success this time round, while they create some of their own problems, they deserve a bit of luck.

I think the huge price of the PS3 when it launched was part of the reason Sony lagged behind Miscrosoft (along with launching after the Xbox 360 which made them play catch up). I hope they don't repeat the same mistakes.

No he didn't. "100% downloads" and "no hard drive" do not go together. If you download a game, you need somewhere to store it, no? Otherwise, no PS3 game can be more than the 8GB of RAM the thing has (and it's unknown how much of that is taken up by the OS/GPU). Also, having to download several GB of data every time you want to play a game is hardly good for business.