I saw discussion of this and did some research:

http://www.blu-ray.com/faq/


1.12 What will a Blu-ray Disc recorder cost?


As with any new technology, the first generation of Blu-ray Disc recorders will be very expensive, but the prices have already begun falling. The Sony BDZ-S77 is currently priced at 222,000 yen ($2,150), while the Panasonic DMR-E700BD is priced at 189,000 yen ($1,830). The discs required to record high-definition video are priced at about 2,700 yen ($26) per disc. The explanation for the high retail prices is that the recorders are targetted for businesses and enthusiasts rather than regular consumers.

According to the Blu-ray Disc Association, the overall cost of manufacturing a Blu-ray Disc will in the end be no more expensive than producing a DVD. The reduced injection molding costs offset the additional cost of applying the cover layer and hard coat, while the techniques used for applying the recording layer remain the same. As soon as manufacturers start mass production of blue-laser components, which is expected to begin in 2005, the production costs should fall and eventually be within 10% of DVDs.

According to this article, Blu Ray will be primarily used for movies. Never mentioned games.

More info:

http://www.gamespot.com/news/2004/08/04/news_6104095.html

TOKYO--According to Kyodo News, Sony officials announced today that they will use Blu-ray Disc technology in their next-generation console, most commonly referred to as the PlayStation 3. Sony revealed its decision at a press conference held by the Blu-ray Disc Founders (BDF), an organization committed to developing and standardizing the next-generation optical disc format. The BDF also used the occasion to announce that it will finalize the specifications for the read-only version of Blu-ray Discs (BD-ROMs) by September 30.

Sony has been investing heavily into Blu-ray product development and was the first company to have a disc recorder on the market. The company had previously hinted that it may use the format in the PS3. Sony's Blu-ray Disc R&D division chief Kiyoshi Nishitani commented in an interview with Asahi PC magazine in March that the company would like to establish ground in the Blu-ray Disc market by adopting BD-ROMs for its "home video game console."

The Blu-ray Disc Founders organization is composed of Sony, Panasonic, and 11 other major electronic makers. Like its predecessor, the DVD, the BD-ROM will primarily be used for movies. The companies plan to start marketing Blu-ray Disc playback machines (without recording capabilities) by the end of the fiscal year.

Sony is relying heavily on the Blu-ray Disc format, so the use of Blu-ray as the market standard in next-generation media is vital, especially since the company also publishes movies through its Sony Pictures subsidiary. Adopting the Blu-ray Disc for the PS3 should help spread use of the format, similar to what the PlayStation 2 did for DVDs.

Early expansion of the Blu-ray format would be ideal for Sony, considering it will have to compete with high-definition DVDs (HD DVD) in the future. Blu-ray Discs can hold 25GB on a single layer and 50GB on the dual-layer discs, while HD DVD discs--which have yet to be released--will hold only 30GB on a dual-layered disc.

Sony said it will reveal more details on the PlayStation 3 at a premiere event in Japan on March 31, 2005. The console will also be on display at next year's E3 in Los Angeles.

By Hirohiko Niizumi -- GameSpot
POSTED: 08/04/04 10:33 AM PST

I think its amazing the the next media disk will be able to hold 50gigs

Two things to add to this. The initial cost will be quite a bit higher. Since the factories that produce DVD's would have to be retooled, they (Companies) will naturally pass that price on to us.

Also, they probably don't mention games because it's really not needed for games right now (or any time in the next few years) and all Sony really wants to do with this is to shove Blue Ray into the market in the hopes that people will accept it.

People with HD TV will accept it.