That's like laughing at the kid who got an F on the test because you got a D on the test.

PS3 development will get easier but my understanding is the memory problem has been met by more then a few companies.  The processing power is there but it gets wasted in managing memory because the design did not give enough to support the graphics, sound, and AI that can are capable with the PS3.  New tools may improve it but won't fix the fundamental problem that Sony didn't provide enough memory.

The same can be said about DVD9.  They can put two DVDs out but that won't fix the problem and developers will have to work with what they have to drive the game so that DVDs don't have to be swapped too often if at all.

Both consoles have limitations and as this generation progresses the limitations will continue to become more evident.  I don't see it as a big deal.  It is simply a fact of life that they are two different development environments with limitations.  Most consumers really don't care when the final product comes out, and we make it a bigger deal then it really is.  For many years companies have developed to the lowest common denominator rather then to the strengths of each platform.

 Thats exactly what I was thinking... thats action movie AI *20 guys try to take down Chuck Norris... some one say "hey instead of mobbing him lets see if we can take him two or three at a time..."*

 The thing with the memory isn't loading, which streaming off the HDD would work for. Ubisoft earlier mentioned that all the enemies would require a lot of AI, which uses system RAM, rather than VRAM. The PS3 can use the 256MB system RAM as emergency VRAM, but it can't do the reverse. Hence the PS3 has up to 256MB of system RAM, while the 360 can theoretically use all of its 512MB for system RAM, but would reasonably use up to 384MB.

It can be done on the PS3, but out would require a lot of data management with the Cell. The HDD can't work that way, since busses on HDDs are not as fast as busses for RAM. 

@Lord

You forgot about the space on the blu-ray disc its self :D

I dont get it. Good AI on about lets say 30 enemies at a time vs moderate AI on about 1000 enemies at a time..

yes ubisoft suck.

 That's content in the game total. Memory is for a scene at one time. There is a huge difference. For example, the GC had smaller game capacities, but had texture compression. So PS2 games could be larger (like San Andreas being very difficult to do on the GC), but it could never fit as much graphics in one scene (RE4).

With the PS3 and the 360, the former can have larger games, but any one scene would need a lot more data swapping with the Cell to fit as much data in its memory than the 360. That is not up to debate. Developers have brought it up. Again, the smaller memory can be overcome, but it is still smaller. 

DVD9 space is not really a problem. If thats all they are complaining about then thats a god thing. However memory is more of a worry.