In a rare move, Sony directly responded to Microsoft's 1080p upgrade announcement today. The response basically attempts to earn back any thunder taken from Sony yesterday by reminding consumers of the PS3's much larger storage capacity and "full" HD 1080p support. Keep in mind Microsoft has no plans to produce 1080p gaming content in-house, rather just a resolution upgrade for existing content and compatibility with legitimate HD-DVD media. Says Sony:
"It's unfortunate that Microsoft's external HD-DVD drive will not enhance the experience at all for the gamer. Sony realizes that to truly take gaming into the next generation requires a larger data format for both games and movies. PS3 uses the Blu-ray format for gaming, giving developers 50 GB of high-definition storage on a single disc, while Microsoft's 9 GB DVD gaming format is an obstacle for storing HD content. Furthermore, Microsoft's announced HD games patch is really just a compatibility feature -- upscaling lower-resolution content does not make it Full HD (1080p), something that PS3 can do out of the box."
This is starting to sound like the "my dad can beat up your dad" argument, only between two major billionaire corporations.