Right now, the PS3 version of id's upcoming shooter, Rage, will offer superior graphics performance on PS3 than Xbox 360. Not because of sheer horsepower, but because of storage. The game is shaping up to be a three disc game, a costly proposition due to Microsoft's licensing fees. Textures would need to be compressed "to fit the game's assets on two DVDs."
Microsoft may have to rescind any fees for additional discs, as it's becoming evident that more developers will require more space in the future. For example, how much compression will Square Enix use for the 360 version of Final Fantasy XIII if making multi-disc games becomes too costly? In the future, we're likely to see more games take advantage of the sheer space offered by Blu-ray disc.
[Via Joystiq; Thanks, stoo!]