This month I doubt it. but hopefully at some point in the year. I may be wrong about this and I don't have any links to post, but haven't sony shown some demos at e3 etc where when they used the ps button there was an in game xmb? Possibly the dev units have an early version?

@KBG29: Not all the functionality of the real XMB will be available using the in game xmb. I would very much doubt if they would let you use a web browser etc while playing. It'll be a slightly cut down in game version probably with friends and music as the options.

http://ps3.thegamereviews.com/story-382-CES-2008-Sony-Confirms-InGame-XMB-Sometime-in-08.html

Sony’s gaming division might have a small showing at this year’s CES, but that isn’t keep Paul Purdy from dropping some big PS3 news:  in-game Xross Media Bar (XMB) access is confirmed for 2008.  When pressed for a specific timeframe, the Sony rep simply relayed that Sony’s focus at CES is on hardware.

They need to steup up and put it out soon. I will have alot more reasons to use my PS3 online. It is such a pain to play with friends having to always leave to xmb to go back.

its funny......I saw on gametrailers, i think, a while back that the PS3s that were around (before release) had it. If i can find the page, I'll link

well, I just found it on youtube:

http://www.youtube.com/watch?v=VszZ_63Ap8I

looks like Sony took it out for no reason......

Sony needs to release this soon, because not having it is crippling games like COD4. And I dont think its a FULL XMB. Just music, friends invites and messaging, controller settings, and A/V settings. I dont expect in game web browsing or pictures/video quite yet.

*yawn*

Still waiting... This is taking way longer than it should. Sony has been decent with some of their updates but the big ones keep getting pushed back, in-game XMB being the most important to me (but only if they include cross-chatting).

I hope its out soon.

well they have slowly been enabling custom sound tracks into games. That is a step in the right direction.