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I don't think this will affect the Xbox360 much, mainly because the install base is so huge and that the games are still put on regular DVD. Sales will probably begin to drop due to people who were holding back on HD media will move to the PS3 as a cheaper Blu-ray-player-and-game-machine combo. Though, people who bought into the external HD-DVD drive attachment are probably kicking themselves for wasting that ~$125.
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