It makes a huge amount of sense. Blu-ray allows for the complete work on 1 disc. It allows cramming every kind of extra feature, special addition, even a whole movie in addition to the game like we get with Watchman the complete experience.

That's all fine and good but we're talking a difference of 40GB here. I'm not even sure how you cram a Blu-Ray full with current development techniques in the industry. Maybe 40GB of raw textures? The kinds of extras you're talking about don't really leverage Blu-Ray storage to begin with.

For Xbox to ever do anything even remotely close (it's already having to slice and dice the big games across multiple dvds and I am sure paying large amounts of money to dev houses to do it)

Devs don't release games and it costs them very little to include an extra disc for retail. It's more of a concern for retailers who sell used games than it is for publishers.

they will have to develop or rent something like Blu-ray, or go digital only with people adopting very, very large hard drives.

Very large hard drives are conveniently very cheap and you don't need to manage a stack of discs. There are ups and downs to every technology, including Blu-Ray.

Secondly, Blu-ray locks in people just by existing. Once most people get used to it, and hooked on it, they are sold, especially if they have a nice high end HDTV. Watching the additional Batman content is amazing. Even Red Alert 3 has incredible in game cut scenes that would be cut down to a lower res for disc space on Xbox.

Unfortunately people don't really seem to be adopting Blu-Ray at the rate where it will matter for this console generation. Blu-Ray sales are sluggish and the majority of PS3 owners don't even own a Blu-Ray movie. I think Blu-Ray brings some great things to the table but unfortunately the HDTV transition is going a lot slower than you realize and the public needs to be educated on 1080p versus 720p. That's not even getting into the technical details like how 1080p isn't discernible from 720p on most sub 42" HDTVs.

Xbox is losing people to PS3

Sales figures don't bear you out here, sorry. The 360 is the only system showing any growth figures so far this year. We're in a bad economic period as it is and gaming in general is taking a beating like every other industry. Sony's success doesn't need to come at the expense of Microsoft, they can be quite successful on their own. This console generation has proved that there is room to support three large competitors.

No I will make it now. The pipework for a competitive app market is PSP Go, followed by a program to encourage small apps... You want to pretend it isn't obvious and on the way, go ahead. I am commenting on a comments section of a forum.

As for the PSP 2k-4k line, Sony publicly said during E3 they realize many of their customers prefer pysical media and they are going to continue to produce it. I would want to phase out the 3000 line too, it's embarassing. In addition to those facts, to not offer another PSP would invite people to abandon the platform if they don't want a digital only service. Something that wouldn't be risked when people will more than likely adopt it voluntarily when a phone is added to the mix...

Well you're free to make the comment but I'm going to treat it like the fantasy talk that it is until it becomes reality.

I have been saying it's 10 years away for over a year, but I am pretty sure MS won't be patient, and all the signs I am seeing point to them being a Steam-like console service sooner rather than later. It's more prudent to bail now before you get stuck in a 1 machine DRM system with digital only.

As I said, Microsoft and Sony don't really have a choice. They have to be patient as their revenues depend on retail. In terms of DRM neither company is innocent, Sony is after all the originator of SecuRom not to mention their cd rootkit fiasco and countless other sources of proprietary connection methods they devised over the years, most of which thankfully failed. Blu-Ray as a format isn't even open, it requires royalty payments for licensing privileges in many commercial usage scenarios.