Standard 60 gig HD for PS3 confirmed

Yahoo Games has confirmed that the PS3 will ship with a standard 60 gig hard drive that can be upgraded if preferred. Not clear if the upgrade means a larger hd, or an additional drive altogether (Joystiq
thinks the latter).

Maybe I'm spoiled by the 200 gig drive I stuck in my original Xbox, but it irks me that PS3 fanboys get to brag about a bigger hard drive, even if Ken Kutaragi has yet to claim it can bend space and time.

Do you think Microsoft is obligated to release an upgraded hd to match Sony? I've heard many people say that they don't "need" that much space, but that sounds like  a sour grapes position, especially if you believe that the future is all about downloadable games and content.