I have a PS3. I use quite a bit of storage for free demos and videos downloaded from the Playstation Network. I also copied my entire music library to my PS3, as it is a decent media player, and provides another backup.

 

The PS3 has started to come on strong. There are some great games coming, and the Playstation network is much better than it used to be. I think it will really give the 360 a run for it's money, as developers master the Cell processor and leverage the higher capacity of Blu Ray.

 

BTW- Blu Ray is a huge bonus. I am bummed when I can't rent a movie in Blu Ray...and have to resort to old school dvd.