and more ...
Plays BD, plays DVDs (upscales), CDs (upsamples), SACDs (60GB version); supports 7.1 surround sound and HDMI 1.3; streams DivX and MPEG video from a media server; streams MP3, AAC, WMA and AC3 audio; can rip CDs to the hard disk and look up the album info; can display your photo album as well. 60GB version has a card reader. Has a web browser (OK - not a good one, but you can read the news) and can take a video cam for online chat. Runs Folding@Home if you want to help the world. Has wireless LAN (60BG version). Has bluetooth. Can communicate with the PSP, which can be used as a remote console. You can plug in a keyboard and mouse into the USB ports.
Works out of the box. Sony subsidises it.
Even if it didn't play games, it would still be a good deal.