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Blu-Ray at first was not better, the surface to read it was too delicate, so it had to use a protection, then TDK came up with the hard coating polymer and suddendly, Blu-Ray was a viable format...

Let me show you why BR is better than HD-DVD:

1. Space, and don't tell me this is not important, for those of us who saw the Betamax-VHS war back in the 80's, will agree that Betamax had better quality, but lacked the space that had the VHS... Now Blu-Ray has 10 GB more for storage space in a single layer, so that's good...

2. The Maximum bitrate on all areas is better on Blu-Ray, providing better video and audio quality.

Now, HD-DVD is mandatory region-free, and that's better, but it's not like Blu-Ray has the DVD restrictions, Blu-Ray has 3 areas with optional region-free and as of this date 71% of all discs released are region free...

As of DRM, is the same for both, of course Blu-Ray adds 2 more, but nothing that affects legitimate users (like EA's DRM)...
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Now on other subject, it's true that the PS3 is not the cheapest standalone Blu-Ray player anymore, but it's still the cheapest multimedia system overall: (Blu-Ray, DVD, CD, Digital Streaming, connection with PC and standard Hard Drive/USB connection for most formats of video and audio files), so it's still the best deal overall, but those that only care about blu-ray can buy now cheaper standalone players...