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I have to pitch in and say that as a long-time X360 and PS3 owner... I've downloaded way more games from PSN than I ever have from XBL. Geometry Wars rocks, and I scored Braid (although I'm not sure it was worth the $$... I regret buying it much like I regret buying Elefunk. Both decent... neither worth the fee.)... beyond that I pretty much have to pitch in with the PSN fans.

I even buy cross-platform games on the PS3... but of course I have a 320GB HDD and I prefer the PS3 controller, so that's sorta an unfair comparison.

PSN does have better content available digitally than XBL does (this is nothing more than my opinion, however)... and it is ironic that MS talks up how they want to go for digital content in a big way... yet PSN is taking the first steps to having substantial titles (meaning retail-scale) available. The fact that PSN has large titles, like Warhawk, GT5:P, Siren, and now Burnout Paradise available is a sincere step toward serious digital distribution that XBLA has not matched, in any form. There are more on the horizon as well (SOCOM: Confrontation, Ratchet&Clank:QfB, etc...). I don't see any such major titles coming down the XBLA road.

Why not? Where is the MS talk about "future digital distribution" bearing fruit, relative to Sony's work with PSN?

There have been some good titles on XBLA, just like PSN... but I don't see anything major there at this time -- just hot air from the MS execs. This isn't really something that can just be denied. PSN is definately improving in areas XBLA hasn't even touched upon (yet, despite all the talk).