Microsoft and Sony have been heated rivals ever since the first PlayStation and first Xbox hit the scene so many years ago.

And by the way the two companies talk about each other, it looks like the two will be talking smack until the end of time.

In a recent interview with 1UP, Shane Kim of Microsoft was asked whether the new Xbox Live revamp was due to massive improvements in Sony's PlayStation Network since it launched.

"Well, first, I disagree with the notion that Sony's breathing down our necks," Kim responded. "We've been doing this for a long time, and in the process of continually designing, tweaking, adjusting and improving our service, this was a natural progression of where our service was going. Sony's actually in the position of having to play catch-up. This was something that we needed to do not only to stay ahead of the curve, and draw in new consumers to what we offer, but this also obviously benefits our current installed base as well."

Now that multiple pubs are putting out games for the iPhone, who else is looking to jump aboard the bandwagon?

According to BioWare co-CEO Greg Zeschuk, the company has multiple people looking into the iPhone possibilities.

“We look at every platform that comes along. Obviously, something that’s as big a cultural and technical success as the iPhone is something you really got to take a close look at," he told MTV Multiplayer.

"Certainly, there’s nothing written in stone yet but we’ve got a lot of folks looking at it. It’s intriguing. I think one of the things that we’ll have to see how it shakes out is what type of consumer buys games on it and what type of experience they’re looking for."

The Entertainment Merchants Association has released their 2008 Annual Report on the Home Entertainment Industry, and the news bodes very well for the backers of Blu-ray.

The high definition format, which officially won the format war over HD DVD just a few months back, is poised for major growth, the organization states.

According to the EMA, by the end of 2012, sales of Blu-ray Discs will surpass those of standard definiton DVDs, generating sales of a whopping $9.5 billion.

Home video spending on the whole has been projected to grow exponentially to $25.6 billion in 2012.

While discussing bringing Monster Madness to PS3, producer Lee Perez complained that the one of the largest hurdles to jump was the console's memory.

"The biggest thing is the memory. The PS3 only has 256 megs of memory. The 360 has 512 so you have twice the memory when you load a level," he told Videogamer.com.

"Now the offset to that is the Cell processor, so if you understand and your engine can understand how to use the multiple cores in tandem you can offset that," he continued.

There's only one problem -- PlayStation 3 has 512 megs of RAM as well. They're just in two different banks, that's all.

While PSP has been a reasonably successful product by any measure, don't count Robbie Bach, President of Microsoft Entertainment & Devices Group, as a fan of Sony's handheld.

"The PSP is a reasonably successful product at the profit-and-loss level. But as a product concept, there are cautionary tales to learn from it," he recently told VentureBeat.

"While it is good at producing audio, it’s not a good music player because it doesn’t have local storage (except for flash memory slots). You can’t keep your music there. It has a beautiful screen, but you can only get the video under the Universal Media Disc format. That format hasn’t been successful."