Discuss Blu-ray? Alright, it's the sole reason for the PS3 to exist. Sony doesn't give two shits about games; they're eating a $400 subsidy on each console sold because the format war is worth far more to them than anything they could possibly profit from gamers.
It's not going to break the PS3; it already HAS broken the PS3. However, in crippling the PS3 from ever becoming a game machine, it may yet win the format war.
Personally I'm staying the fuck away from both next-gen formats for at least five years; by then maybe I'll actually own an HDTV and care.