PS3 Shortage

On November 17th, Sony plans to release its newest gaming system, the Playstation 3. Sony is going to ship 400,000 units to North America, with each selling for $499 (20GB hard drive) or $599 (60 GB).
Although the price is steep, Sony expects that all 400,000 will sell out almost instantly, with severe shortages during the holiday season. What is so special about this game system that makes it so expensive, or better yet, who is willing to pay so much for it?