Focusing on the PS3 alone is foolish. Focusing on the PS3/360 is far more likely to give a good return on investment.

Maximizing Blu-Ray in a meaningful fashion is expensive since all it is is a storage medium. 50g worth of bloated video is trivial. 50g of actual art assets? That's a LOT of money. Not many games will have the budget for that.

According to John Carmack, Microsoft has some policies in place that actively discourage games being on more than one disc. The cost of an extra disc is relatively negligible, but the additional fees and royalties from Microsoft aren't.

Capcom's independent, and intends to stay that way. As such, anything that profits them makes sense. Heaven forbid they stumble and Activision buys them :(

I find it ironic they're making this comment considering that was an accusation levied at Sony when they got into the business... "buying" their way into it, specifically.

That being said, the only reason we see Valve games on the 360 is convenience for Valve due to DirectX. Every interview I've seen with Gabe Newell indicates he's not a fan of consoles, and the only reason they do anything for the 360 is because its easy for them.

While I'm quite keen on the idea, I won't go for it until I see more games from companies I like. When Microsoft announces partnerships with SNK, Capcom, Sega, Konami, whoever owns Data East's various IP's, etc.? Then I'll get my credit card ready. I do hope that PC and 360 players can play cross-platform with each other, though. For games so small, so simple, it'd be a shame not to.

I'm hoping it does well; well enough to be profitable. I don't care how it does against the iPhone. What I want is for me to be able to choose from a wide variety of smartphones (Pre, Blackberry, Android, WP7, etc) from any carrier (because I want them to be in constant fear of me, the average consumer, abandoning them for their competition). I think Microsoft is certainly going about the business portion of this a little bit smarter than Palm did with the Pre, thankfully... here's hoping it does better than expected.