If the developers had any sense they just wouldn’t use pre-rendered video, instead just use the in game engine, that way there would never be concerns about space. Its getting to the stage that pre-rendered footage is no longer needed, it looks good enough already. Standard dvd technology is proven to work; its fast, cheap and reliable none of which you can say about blu-ray or hd-dvd. If microsoft go with hd-dvd then they get dragged into a format war in which there is a good chance that hd-dvd will lose. Microsoft listened to games developers and gave them what they wanted in a console, sony yet again went it alone and made a console they wanted. This time sony won’t be as cocky because there market share will fall, not very good for a company that makes most of its money from the playstation brand. Regarding emulation, it won’t be easier as the 360 has a triple PowerPC core, which can be compared to a MAC. You would need an extremely powerful PC to even think about doing it and even then you would find it almost impossible. And the PS3 uses a completely different design, so yet again probably impossible.