[citation][nom]Doughballs[/nom]Blu- ray is becoming a huge factor in terms of audio and visual fidelity( see FFXIII).[/citation]
In all fairness, Blu-ray *IS* an over-hyped element for games. The PS3 game disc format caps it at only a bit less than 50GB; the PS3 CAN'T use the 200GB+ formats for games. Plus, the space isn't necessary for actual game content; after all, Crysis utterly blows any and all console games right out of the water, and fits on a SINGLE normal dual-layer DVD. So any and all "better visuals" on the PS3 are due to its CPU and/or GPU, NOT the disc format.
The only thing any games use that'd NEED that much space is pre-rendered FMVs. Of course, FF XIII is absolutely FULL of them, as was MGS4. It's to that point you're moving from a game with FMVs to a high-def movie with some gameplay attached. If a developer felt confident enough with the console, they'd use in-engine cutscenes to drastically cut space required. (case-in-point: N64 shooter Perfect Dark had over half an hour of full cutscenes, even though the entire game fit on a 32MB cartridge)