Sigh.
About BluRay delaying the PS3's launch. What exactly gave you the impression that Sony would have been ready a year earlier if they wouldn't have had the diode problem?
The diode problem is responsible for not having enough units at launch for the U.S., and for delaying the E.U. launch. But hadn't those shortages existed, Sony wouldn't have been able to launch even within a year of the 360 anyway. Note that:
- no console ships with no software whatsoever, and they barely had games ready for the U.S. launch as it is, let alone if they had launched even just half a year sooner
- the SDKs for the Sixaxis only came in June
- the final devkit around that same time
- basics for online not even clear to third party developers after launch (witness VT3 with no online support because Sega didn't get information / sdk in time, games like Motorstorm and even Resistance patched afterwards to support universal Buddy lists, etc.)
The only advantage is that they could have produced more units and for a lower price. However, the downsides of this:
- Space. Yes, really. PS2 games did in fact use a lot of DVD space. Think MGS2, at 6GB (MGS3 on two discs), or Champions of Norrath, filling a 9GB dual layer disc completely. And lots of games in fact fill up a single side and limited themselves to a single side, because there were issues with authoring dual layer DVDs as well as some consoles not playing dual layer discs very well.
Maybe some clever people here didn't, but most (like me) expected the 360 to come with a HD DVD player. That Microsoft didn't could have been clever strategy that will pay them off handsomely, or it could have been a sacrifice for getting the 360 out a year before the PS3, because HD DVD wasn't ready in time after having been delayed several times. But history shows a clear progression in how much space is needed for each new generation, and it is up to Microsoft, not Sony, to prove this trend can and should be broken. And no, they can't prove this in just the first one or two years.
In the meantime, even on the PC we are getting games that break the mold (10GB HDD install for Stalker, anyone?) and this won't stop. Sure, you can do a HDD install on the 360 too, at least on some of the models, but the 20GB model fills up rather fast if you do even one 10GB HDD install.
I'm sure you will see soon enough how a second generation Insomniac game like Ratchet & Clank with streaming and therefore more high-res textures will expand the 12GB that Resistance really needed, to something much bigger. Never mind a next Final Fantasy. There will be big games. And you can say what you will, but if Final Fantasy chooses to have a layout where you can access any previous area at any time, or MGS4 has an online option that allows you to use any war-theatre as an online map, then swapping discs is going to suck. Sure, game developers can program around it, but you don't want them to have to.
- Speed and authoring complexity. There is a penalty for using Dual Layers on DVD, as switching sides takes a long time. So you have to treat the sides as two separate entities to make use of the DVD speed optimally. Additionally, you have to be more careful with using the space, as you don't have much to spare. Multiple discs means increasing your development complexity (burning test-discs, adding logic for switching discs and so on). BluRay, while suffering from this problem initially, got small burners early in its life (about a year ago) and they are now widely available: 700 euro for a PC OEM version in our local stores, anyway, last time I checked), and getting up to speed; slow burning speeds for 22GB were one reason why Insomniac chose to attempt - and succeed - at reducing their disc-size 16GB, though obviously there was room for further improvement this time (to, say, 12GB, which is still more than 4GB larger than what I understand the 360 will hold using Dual Layer, which is apparently limited to 7.4GB?).
- Price. Before you know it, BluRay may actually save you money even for gaming. Think for instance of the recently announced BluRay cover disc for the Official UK Playstation Magazine, which will contain game demos and trailers, that you then don't have to (re)download, install to HDD and/or backup for later use should you want to. These discs can save you up to 50GB of space (though probably they'll start with 25GB) and downloading, allowing you to go longer with your internet fair use limitations, hard disc space, backup tools and so on.
All of that is still basically game related. In terms of media, movies that have less than HD DVD or BluRay compression levels and bitrates have been compromised and deliver a less optimal HD experience. Sure, it may be good enough for you, but they may not be just as well, and this will start showing more and more as we move on to 1080p - but even at 720p, some people can tell the difference already. Authoring and recording quality, in the meantime, is just getting better and better. With all the extra features that a HD quality disc provides, downloading a similar experience is going to mean you'll need a lot of space on your HDD, and while that's not entirely expensive, right now Microsoft isn't making it exactly free either. If I download a 100 movie collection, I'm going to need to have it backed up somehow eventually anyway. There's a long discussion to be had about streaming and re-downloading and so on, and there's definitely a place for that, but it won't be ready overnight - the internet, for one, couldn't handle even handle the extra strain yet right now.
In the meantime, the combination of profits from BluRay, and the reduction in
cost of the BluRay hardware in the PS3, both highly accellerated if BluRay becomes the new standard, will allow it to become cost-effective soon enough.
And finally, if you compare the transition from VHS to DVD with the transition from DVD to BluRay, then don't forget that the BluRay player still plays DVDs, unlike DVD players, which didn't play VHS tapes and hence invalidated your whole existing VHS collection. The transition from CD-ROM to DVD was much smoother and faster, for the simple reason that getting a DVD player was a simple way of future proofing, getting better features, without having to throw away anyting or keep a CD-ROM player inside your PC as well.
The transition to BluRay can and will be just as smooth, and will happen in the PC space as well.
I'm not saying that Microsoft's strategy is invalid, or that Sony will have an easy victory. But let's not understate the advantages of having BluRay in a console too much, ok?