Sony has to allow MS to use Blu-ray. If they don't, Microsoft's angry hoarde of lawyers will rip them to shreds. Besides, Sony wants the licensing money.
The PS4 is definitely a consideration for the upcoming Xbox.
I disagree that the Cell is somehow better suited to scaling. After all, both the Xenon and Cell are based on the same architecture. MS could simply have IBM add more cores and call it a day. Or they'll use the Power6 platform (currently using Power5). Either way, it's still PPC architecture. PPC isn't going anywhere as long as the Cell exists.
The next Xbox better be fuckin' bulletproof. I completely agree there.
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