Paramount and Dreamworks backs HD-DVD exclusively!

[shams]

@everyone - this is the real problem with the Sony strategy (integrated technology). Its like a huge gamble, a risk. Great rewards if they win (and BluRay becomes dominant) - but great danger if they lose.

They now face the real risk of BluRay dragging down the PS3 - forcing people to buy a player (and pay extra) for something that people genuinely don't want or need.

This would have to be one of the most significant announcements in the next-gen war this year.

Things to watch for:

i) Sony's stock price: will show how people in the market perceive this news. If I was an investor, I would be getting very, very nervous around now.

ii) Accelerating PS4 development: networked version of the PS3, with the next CELL CPU (more SPUs - 16?) and a Wiimote style control system.

iii) Further price drop or bundling of HD-DVD drives: If MS ever wanted to hammer home the advantage, this would be the way to do it. 

iv) Sony hitting back: Announcing cheaper BluRay players, more bundles movies and exclusive BluRay content. 

v) Sales variations: Immediate drop in PS3 sales, and an immediate increase in HD-DVD (player) sales. 

...

Someone just turned the heat up...