He started chuck e cheese up as kinda part of atari but it was spun off. he no longer owns it. His startup is Uwink...I think it's mostly those games you might see in bars...
He used to own/live in the Folder house in California...you know Foldgers coffee ? it was that guys house.
Anyway much of the gaming industry works in the razor blade theory. You sell the product at cost or below cost to make up in the other part (games). You do NOT make money selling systems...you make it making the games. Moreover there has to be an established ratio that sony knows of how many of ITS games (not a 3rd party...although they get a fee from it) to sell before it's profitable.
personally I think sony really made ps 3 way too powerful and it's distracting itself from other things. The battery problem with laptops makes me think twice about this...now I'm not saying these things will explode but anyone remember the Texas Instruments 99/4a back in the day? They forgot to have UL look at the wires and the AC adaptor was improperly shielded...yielding potentially LETHAL electrical shocks!!
The only killer app I see on the PS 3 is GTA 4 and that comes out....next year...AND it comes out also on the xbox 360 which is already cheaper now and will most likely be cheaper next year and have more games.
Also to remember is that these newer systems (360, ps 3, wii) are also trying to step up to HDTV...this can be tricky as I don't think everyone will fully be upgraded for a few more years. Hasbro tried something like this with the NEMO back in the mid 80's...it was a VCR based system but when they added up the fact that format wars with beta was still going on and they were about $300 that the market wasn't there...