Don't forget DLNA too. That's Blu-Ray + several music formats + several video formats.
Another colleague of mine bought a PS3, primarily because of its media functions, and Fifa 08 was just a small second, more of a surprise since he discovered he really liked it and thought it looked great. But he's getting a little one (their pregnancy is 3 weeks ahead of ours!) and basically he choose to buy a PS3 and a MiniDV camera instead of a more expensive camera with a built in HD. Another colleague of mine bought a PS3 this Christmas as well. He's a PC gamer but he's been dying to play Assassin's Creed and decided he just couldn't wait anymore, though no doubt he was also a little infected by my ravings on the machine (I sit across from him half the time).
That makes 7 of us now (out of 25). No Wiis (a former collleague had one but he didn't like it and he sold it with a profit over last Christmas), and I'm the only one who owns a 360. I don't think our company is a good representation of the general public though!
Anyway, it's media features are very strong compared to standalone devices, and yes, right now, I still think it's the best BluRay player you can buy, simply because it's so easily upgradeable (and upgraded so well and often too), comes with a harddrive, plays just about everything, has plenty of memory and processing power resulting in among others very good startup times, a very good browser, and hey, it plays some awesome games too
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I'm sure it will be beaten eventually, but not just yet I think.
As for the announcement, just today I was thinking, after reading a very positive review of the Ratatouille BluRay, that it looked like the format was ready for big-time, and it seemed to me a signal that the war might be over soon now. I didn't expect this soon though!
Although you never know. But I think the gist of it is right - it's time to get rid of the confusion. Still, who knows how many HD DVDs will be sold now at dump prices, eh? I've seen a lot of weird things happen in my time, and I'm still young.