Sony have just announced
(presumably in response to yesterday's announcement
from Microsoft) that the 20gb PlayStation 3 will ship with HDMI as standard.
Since SCEI first announced product specifications of PS3 at the Electronic Entertainment Expo (E3) in May 2005, demand for enjoying full HD quality image and realistic digital sound through HDMI has grown tremendously. Given the sharp increase in availability of flat displays supporting HDMI in the market, SCEI has decided to equip HDMI as standard on all PS3 systems.
And the arms race continues!