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tuoyo said:
Many people on this site (actually I mean Sony fanboys) have gone on and on about how Blu Ray in PS3 was the right decision and that in the end the royalties would make the losses on the PS3 hardware worth it.

Of course Blu-ray was the right decision for Sony. Don't build a fanboy strawman argument if you don't see the reason for it. Sony controls two studios which have massive archives of movies, ready to go to Blu-ray discs. There is your money, not in the royalties. Sony knew that right from the start and now you do, too.