Blu-Ray is just a new format. Just like VHS and BetaMax are two different formats. Ironically BetaMax was Sony's format just like Blu-Ray is. Let's just hope they don't meet the same ending.
Blu-Ray is currently the opposing format of HD-DVD from Toshiba.
Worht 500? You need to ask yourself that question. PS3 has the potential to offer you the best games this generation.
I like the fact that the PSN is free, unlike XBL which you pay $50 a year. Think about this, within 2 years you would be paying more for the 360 than you would for the PS3 (assuming you would go with the Premium).
Don't forget to go to Circuit City, they are offering a free extra Sixaxis with a PS3 purchase.
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