Is it just me or does this now make the memory stick/flash slots on the PS3 a whole heck of a lot more valuable than they were before?
This proprietary memory storage strategy that MS is using is a nice way to sell overpriced peripherals like the HDD/memory unit and make extra money, but I think once the PS3 hits the market with open standards for memory this strategy will have officially gone the way of the dinosaur. For the price that Microsoft is selling 64MB of memory you will be able to get 1GB of memory for the PS3 when it launches. You'll be able to get 512MB of memory for the PS3 for half the price of the 360's memory. That is assuming you don't already own that memory for your PSP, PDA, cell phone, or digital camera.
Like the wi-fi issue because of the way MS is over-inflating the cost of their proprietary storage and closing out open standards the PS3 with it's open standards now has a much greater perceived value.
If Sony uses open standards for their 2.5" HDD like they did with the PS2 HDD then the memory options for Xbox 360 are going to look even worse. MS is going to be stuck with very expensive, low capacity, proprietary storage formats.