"We think every PlayStation 3 owner should have an 'elite' experience, which is why we include an internal hard drive and HDMI output in every PS3 we sell, along with the 50 GB of storage capacity on a high definition Blu-ray disc. Sony has been the strongest advocate of high definition as the future of next-generation gaming. This requires high-definition components, including HDMI output, and large storage devices to deliver and store all that rich and vivid HD content. Microsoft's announcement today [er, "tomorrow"] not only legitimizes Sony's PS3 strategy, it moves us closer to adopting universal standards in the area of high definition gaming that will benefit game developers and ultimately the end user."
Sony seems to be implying that 16 months after launch Microsoft is now playing "catch-up". They may be right in the sense that the 360 doesnt match up to the PlayStation 3 for consumers interested in HD video on discs.
Source:
Joystiq