Ars Technica is reporting that sources have stated that " 'DVR functionality is going to be a big push for this thing. We don't know exactly how the video is going to get into the system, but it's a top priority for Sony,' the source said."
There are also ideas about integration with the PSP to allow content to be absorbed on-the-go. "Like the iPod that is tethered to a computer, the PSP will be tethered to a PS3."
I'm excited enough that the PS3 will have high definition output, but this would certainly help to justify the hefty price tag that is sure to accompany a next-gen system.
I'm sick of watching TV on a schedule, and it's nice to see new legal ways for time-shifting content.