Sure, look at the PSP when the UMD drive was built into that (makes it so that movies can be watched in the palm of your hand). However, with the iPod now being able to let you watch movies via Podcast, the PSP would still be cheaper than the iPod for a portable media player, obviously, as well as being able to play your PSP games. At least when you think of the PSP vs. an iPod or a Creative Zen, the PSP is rather cheap, way to go Sony. However, when it comes to the PS3, tho, I don't think so... The X360 has those bells and whistles for a bit cheaper, and even with the HD-DVD, you'd still be cheaper than Blu-Ray, albeit not by much. However, if you're just looking at a game console, and not a full-blown entertainment hub, the Wii's your choice.
Wii price point discussion
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