A guy I work with had the privilege to beta test the x-box (I know, I know... so he says). Anyway, I pumped him for all the info I could. As far as games went, he said he could only play a few games that were originally based for the PC... (he didn't sound too excited) However he did say he had/seen some sort of demo that played some sort of animation, he was very impressed with that. He said, 'It totally blew anything I have seen so far on the PS2 away!" Hardware wise, media type is straight DVD, and he said the HD was SCSI, used only for swap space... The rest was basically a personal computer.
Personally I own a PS2, and I would not say I'm disappointed, but SONY is screwing up lately with the release and all. Only time will tell. I, however, will not be jumping for joy until a low cost DVD writer is available.