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MS jumping in with HD-DVD was a bit of a loss they will probably bring out a blu-ray player add-on sometime next year.
But the addon will mostly appeal to people who allready have an X360 with HDMI.
Having 2 seperate boxes with extra cabling shelf space etc means that as a blu-ray player the 360 is worthless which is why the HD-DVD add-on did so badly.
The PS3 with it's built in power-supply and built in blu-ray it's very compact and quiet- it may not sell equally just as a games machine but it will own the overall sales as a combo blu-ray player/games machine.
Other than this minor loss MS is still reaping money from the monopoly they command - i run linux myself though windows is good too.



PS3 number 1 fan