TeamXbox reported yesterday that Sony's upcoming console, the PlayStation 3, will indeed ship with a hard disk and one that's about three times the size of the Xbox 360's hard disk. Also, the Playstation Network Platform will allow free online gaming with its basic service, only charging for massive multiplayer online role playing games and the like, which is in sharp contrast to needing to pay for Gold Membership on Xbox Live to be able to play any games. The Playstation Network Platform with support PlayStation 3 and PSP games on launch, and will ultimately support PlayStation 2 games as well.
It will be interesting to see if Microsoft will do anything to alter their online service, and more importantly to me, make their HDD mandatory for all games. Right now, you do not need a HDD to play on an Xbox 360, however if you want to save your games you'll need either one of their memory cards or their HDD. If you ask me, not making an HDD standard on the Xbox 360 was always a stupid move, as the Xbox's HDD was such a great plus for that console (though it apparently cost Microsoft money for every Xbox sold). Anyway, we'll see what develops.