They're just trying to appeal to a broader audience. A person might be more encouraged to buy an xbox 360 if it supports netflix and facebook.
Virtual Reality is the next step in gaming evolution. it will happen. for now lets be content with the consoles we have
Even now, PS3 commercials aren't touting games--but it's media capabilities. Both Sony and Microsoft are trying to broaden the media appeals of the consoles.
In hard times, people will be more willing to plop down $300 if this item can also double as their media center.
To be fair, the PS3 hasn't been keen on games since its debut.
But yes, game consoles have been touted as media centers. This news isn't new, as they've arguably been doing it since last gen with the introduction of consoles that doubled as DVD players. And it seems like the Wii will be the last "pure gaming system" in the sense that it doesn't double as a blu-ray player/media storage device/toaster oven.