Bluray has a 50GB capacity (Score 3, Insightful)

What Ken Kutaragi appears to have said was that the PS3 will have 54GB of storage Capacity in addition to playing DVDs and CDs. Since Bluray can hold 25/50GB one assumes he is alluding to the inclusion of an onboard HDD or flash memory device.

http://ps2.ign.com/articles/549/549950p1.html