blue --ray was chosen since it's got high capacity, and with these next gen gfx, I don't doubt the massive file sizes we will see that come with the textures, models, and coding that go with these great visuals. That's why I donwer about MS deciding DVD was good enough.... 9 gb max storage... no way... we will see thr return of muti-disc titles.
Itagaki said it himself, the DOA4 preview FMV was 4gb alone... that's nearly half a disc.. With everything in hd, storage is a big factor. And if MS sees ignoring the storage issue, with keeping cost down... they will have some short term sucess, but i nthe long run they done.. unless muti-disk titles become very very common.
But that drives costs up in a whole nother way... bigger cases, more cds to print.. etc... Sony in my book is smarter on this front. Costlier up-front, but, easier for devs and cheaper in the long run. Plus, this format is getting a very warm reception.
Ps3 is very likely to do for Blue-Ray, what PS2 did for DVD. I mean, when PS2 came out, the cheapest dvd players where about $350 ish. And Ps2 comes out for $300, plays games, cds, dvds. That's an attractive option. Now if blue-ray has a market release and public format before PS3.. then I definatly see that boosting Ps3 sales. But if blue-ray comes after, and the standalone player is just alittle cheaper than a PS3 or a little more, then it still stands to help the PS3. Cuz if you can buy a $400 BR player or a $400 gaming system, dvd player, BR player, cd player, which way are you likely to go? The beggining of this console war, will be based on the media formats and how they do outside of the gaming world. If BR gets good market share and is a welcomed format, Ps3 may take an easy lead.
If dvd continues to be popular, and a suitable format for HD-gaming, then maby the 360 will take it. Any rate, I don't see 360 walking away with a win in the books, and if they do get a w, then it will be very very slim. Playstation is a household name... X-box 360 shows promise... but a household name X-box is not.