The LA Times and "studio executives familiar with the plan" are predicting a summer 2008 launch for the PlayStation 3's video download service. Whether this service is a rental schemeā€”like iTunes or Xbox Live Marketplaceā€”or a download scheme where you get to keep your videos and transfer them to the PSP, is uncertain.

What we do know is that Sony's been hinting at doing video since they unveiled Home back at GDC 2007, but also doing some fancy things like putting video in public places or doing some interesting social networking type thing within Home for video. What we wouldn't give to be able to watch a video with our buddies, online, and have a group chat with our Home avatars. [LA Times via Game Pro]