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HD media can't be disentangled from HD gaming. They're two sides of the same coin: these games require a next-gen DVD media format and next-gen-capacity storage space. That trickle of downloads, add-on packs, and expansions is going to rapidly swell into a flood.

Sony is a hardware company, and understood all this perfectly. Microsoft didn't, which is why its 30% market share in 2005 crashed to 18% market share this year.