Last week, Netflix and LG unveiled the BD300 - a Blu-ray player capable of accessing Netflix’s streaming content and expected to ship in September for less than $500. At $400 or more I’d expect to see integrated WiFi connectivity, but LG’s betting the target audience has hard-wired their living room. Statistically, they may be right. But why limit the potential market to save literally a buck? Another possible misstep: While I see the logic in supplementing optical video discs with instant access to a library of digital downloads, the highest of high def formats (now $1-$2 more per month) is an odd juxtaposition to SD-only Netflix streaming media. They’d get more traction with an upscaling networked DVD player in the $150 range.

Of course, at the end of the day, content is king. And I’m generally down on the Netflix service. It’s just not very compelling. While Watch Instantly is good for catching up on NBC and Showtime television programming, forget it if you’re interested in current mainstream movies. Even if Roku has moved 100,000 units ($99/ea), I wonder how many sit unused like mine.

Which brings us back to the $400-$500 LG solution and the problem with pre-announcing… The PS3 is a better value and a more powerful networked Blu-ray player for anyone with even a passing interest in gaming. You may not get unlimited fixed-priced streaming video. But you have the option to rent more desireable digital content from Sony. And I’d have picked up a PS3 when Sony introduced the Playstation video download service last month, if I’d been unaware of their announced September lineup refresh. Why buy now, when for the same money ($399) I’ll get double the storage (80GB) and presumably a Dualshock rumble controller? Not to mention… If the $199 Xbox rumors pan out, perhaps Sony will respond with a small ($30-$50) PS3 price reduction at launch.