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I think this is good for consumers.  This should make a price war between the two, dropping the price to a more reasonable level more quickly.  Of course one will lose out in the end (like the betamax/VHS war did) ubt until that time we will just have to wait and see how both of them go and how they perform compared to their price.

Your right but how far will this war thing go, how far are the companies willing to go? Thats the big question.

Its going to be interesting with the new DVD Types, Blu-Ray shall win this war though because, Microsoft are using Blu-Ray as an extension to Xbox, Playstation 3 will have Blu-Ray Compatibility, and as you can buy these, those new majorly expensive blu-ray players will be useless But Blu-Ray will win the war.