Also being in the industry here, and my feelings are that the battle ground is not on the gaming architecture itself but the war between HD-DVD and BluRay. Before the PS3, HD-DVD's were outselling BluRay like 4-1, since the PS3 launch in USA and UK - pretty much overnight BluRay titles outsold HD-DVD's. Now it's just been announced that BlockBuster have decided to exclusively stock BluRay discs. Effectively Sony has won the format war. That has flow-on effects for the company, in that it owns most of the major film and music labels. It was a simple but risky strategy for Sony, that's paid off, big time for them.