Sony's been talking about launching video downloads on Playstation 3 since even before the console launched (I http://www.variety.com/article/VR1117951896.html?categoryid=20&cs=1&query=pandora in the fall of '06). By last year, I reported that it was in the works. In April, the LA Times confirmed that it was still happening and said a summer launch is likely.

Now today, Hirai reportedly said at a press conference in Tokyo that the PS3 video download store is launching in the US this summer and will include rentals of standard def and hi-def movies. So now it's really truly absolutely officially happening.

Of course, Xbox Live has had video downloads for over a year, and everyone I talk to in Hollywood says they're quite successful. At a minimum, Sony has to match the features of that service and it appears from the GameSpot story that they will. The one advantage the PS3 will have, however, is films from Sony Pictures, which for understandable reasons hasn't participated in the Xbox Live Video Marketplace.

But will Sony just be playing catch-up while Microsoft takes another step forward by finally unveiling its partnership with Netflix? Or will Sony offer some features that Xbox Live doesn't have? Either way, this may not be an area where being on the cutting edge matters is crucial, since nobody is buying a videogame console for the sake of downloading movies. It's just a nice added feature, and a nice added revenue stream for the console manufacturer.

Update: I'm actually doing some more reporting on this right now and finding out some interesting details about how the PS3 video service could be different than Xbox Live. More to come before the end of of the day.