From what I understand, Sony is planning to use Blu-ray technology whereas M$ will be forced to adopt HD-DVD technology (if they want to release Xenon next year).
Now, I'm a devout Xboxer, but I'm a bit worried here. Blu-ray rapes HD-DVD in terms of capacity. To make matters worse, Sony has the clout to persuade Hollywood to go with Blu-ray for the next generation "DVDs".
And while I'm on this topic, another thing worries me about the next generation. I bought the Xbox because it was the most powerful console, but in the long run, the Xenon could be outgunned by the Cell tech of the PS3. Sony will---at the very least---enjoy an extra year of hardware development and possibly benefit from whatever new tech is invented during said year.
Also, I heard M$ is planning to scrap the Xenon's HD to cut costs. Hey Bill, why don't you scrap the ethernet and three of the controller ports while you're at it?
I liked the concept of the first xbox---the "gamer's game console", plenty of horsepower, plenty of features. But Xenon isn't sounding like it's shaping up to embody this concept.
I know---if M$ produced an "Alienwar-ish" fully-featured powerhouse game console, they'd lose so much money every time they sold a unit. But, it'd be sick, and more importantly, it would build on Xbox's momentum and pose a serious threat to Sony's top spot.
Ehhhh.........well.........either way..........I'm sure I'll end up owning both systems.