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One thing is for sure tho, every PS system has been pushed further and further in graphics noticebly as its life extended. The PS3 is no exception there with games just looking better and better.

This goes for any system. Compare Last Gen Games on the snes with the first ones for example.

One thing has to be considered though: Sony isn´t in the same position as it was with the PS1 and the PS2. In the past Sony was the clear, dominating market leader, nowadays it´s only in the third place.

In the days of the PS2 third party developers had the time to dig into the complex system architecture and get the most out of it. Today however the development of games has become more and more complex and cost intensive. To minimize the risks most developers will go multiplatform (or already did). So even if the PS3 might have a edge with bluray and optimized Cell processing, don´t expect to many games to utilize this.
A question I´m really interested in:

Sony always praises the possibilities of bluray, but MGS4 for example is divided into chapters with mandatory installs between them. Wouldn´t it be faster just to change the disc?

Where ist the real advantage of having blueray if the PS3 isn´t able to use it without mandatory installs?