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think we're forgetting that XBOX 360 uses HDDVD's which even though a different fromat then Bluray, can hold a comparible amount of data.


No. Game companies are already complaining that it's becoming hard to compress games on the DVDs for the X-Box, when compared to how easy it is for Bluray discs on PS3.

It's not a big issue, except that it may raise prices on some games as games get larger, since you're effectively buying multiple discs. In the end it will probably equal out though, since PS3 games are already more expensive by a tad.