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The 360 has proved itself for me as as a decent stand alone games system and it knows what it is, the 360's big selling point is the software sales and online capabilities - IMO they wont be too concerned with the whole Blu Ray / HD DVD thing.

 

As long as multi platform releases sell better on the 360 than the PS3 - they have nothing to worry about as that is kinda rendering the PS3's extra power as useless for most games as companies will rarely go there and make a game that wont work on 360.



Those people that think they're perfect give a bad reputation to us who are... 

"With the DS, it's fair to say that Nintendo stepped out of the technical race and went for a feature differentiation with the touch screen, but I fear that it won't have a lasting impact beyond that of a gimmick - so the long-lasting appeal of the platform is at peril as a direct result of that." - Phil Harrison, Sony