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Blu-Ray wasn't a proven format either, and was a huge gamble for the PS3 as it was built in. Remember Paramount went HDDVD exclusive and for a few weeks it looked like Blu-Ray was in trouble. WB out of nowhere decided to go Blu-Ray exclusive which changed the entire format war, as they had the bigger catalog of all the HDDVD supporters. Everyone took a risk, but you say it hurt microsoft. Right now it's helped them as they got their system out first, and have been able to keep the price below the PS3. Digital Distribution is the future, and both systems do it well. You mention the PS3 has full downloadable games, but then again so does the 360 with the Xbox Classics. It's only a matter of time before they do bigger releases as well. Digital Distribution is one area neither will have a problem with