No - digital was always part of Sony's plans so far as I can see. They want a finger in all entertainment/content pies, which is why they own film/music studios and content as well.
They know there is probably one last big physical generation tied to HD TVs hence BR
They know there is a very profitable smaller market for digital - hence downloads / rentals
They know there is a rapidly growing market for digital content beyond music - hence PSP more likely to be a portable content player that also plays games
MS isn't the pioneer of digital. I don't want to sound like I'm hating on them but MS has rarely been the pioneer of anything. MS is very good at taking emerging ideas / approaches and rapidly maturing them.
Just as it released 360 before PS3 MS wanted to get to digital before Sony for competitive reasons, not because the time was perfect in the market.
So no they're not admitting MS was right and no they're not implying BR will fail. Both formats will most likely succeed and if Sony plays it right it should be in a much better position than MS to dominate in both due to its experience and strong content knowledge / ownership.
Both will no doubt be worrying about Apple a lot...
Try to be reasonable... its easier than you think...
