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It's not about giving in, it's more of pleasing their customers, keeping with demands. Microsoft was right, if it's about movie downloads maybe. Btw Sony did a smart move with there video store so it won't hamper Blu ray sales. The only HD content that i have seen were a few rentals, ONLY. Everything else, is purchaseable in SD, but then pesky DRM limits where you can have them ( ONLY PSP ) It's nice feature, but if the consumer wants to watch special features, not worrying about DRM policies, want a physical Disc instead, want to make full use of their HD home theater setup, they'll have to buy the blu ray. Everyone else that just wants to see the movie, with an SDTV ( like me ) can just buy the movie off the PSN, without having to drive to a local Blockbuster