My 11 year old son is using a PS3. It not only does Netflix and Bluray, but also CD, DVD, and oh yea, it does video games too. We bought it for him with a half dozen games for $100. Found it in the classified section here on AC.
Available outputs are Component, composite, HDMI or DVI via various inexpensive cables. The component cable you're talking about can be purchased on Monoprice for like $5.
Bob