They don't have much of a choice. By 2010 the PS3 will be outselling the 360 at such a rate they will need to do something.
The very thing that caused the 360 to be such a huge success is the very thing that is now beginning to hold it back. They need to release a console with media that holds far more data than a regular DVD.
Over the next couple years developers that originally jumped to the 360 will be instead focusing on the PS3 that does not limit their creativity potential like the 360 does.
I am fully aware that there are many people out there not capable of looking from outside the box to see the big picture but it will become very clear as time moves on.
QUOTE(zX_Storm @ May 9 2008, 02:47 PM)

I really don't see the PS3 or X360 having any problem running any games in Hi-Def for at least 4 years. Unless more games follow in the steps of Crysis, but seeing as it was labeled such a failure because nothing could run it, I don't see that happening.
Not correct. Most games for the 360 and PS3 do not run in 1080p and many don't even run at 720p. Being rendered in 640p and upscaled to 720 or 1080 does not make true HD. As 1080p TV's come down to a price level that the average consumer can buy they will start to demand true 1080p games.
In case you are wondering there is a huge difference when running a true 1080p game on a full 1080p TV instead of up scaled 640p games.