Personally, I think their plans for that machine go beyond making it a media hub... I've read that they have plans to release a version sometime in 2006 that would function as a full-fledged personal computer, with a monitor, mouse, keyboard, the works. Unlike the open PC platform - which can run any number of alternate OS's such as a Linux distribution (like Mandriva, which I use), one of the BSD's, etc etc - this XBox 360 based personal computer (if it actually goes into production) will be a totally closed platform made by MS exclusively, and only run a version of Windows.
whether it's closed or not means nothing to 99% of buyers. and they don't want to run linux on it. the 1% who do will hack it just like the last one then write about it on slashdot from their cubicles.
PS3 prototypes have been with games companies now for at least 2 months from what I've read . I'm pretty interested in the Blu Ray capability , and could switch from XBox to Sony this time round .
I might too but will wait until I see the final shipping specs, capabilities, console price and game price. It seems like the marketing departments of both companies are running amok.
i thought the xbox was coming out at least 6 months earlier than the ps3. i don't really care about either, but a few days ago the big news about the ps3 was that sony doesn't have a completed GPU for it and was showing the demos using a computer.
processor-wise, the xbox is probably a lot easier to code for than the cell in the sony.