Blu Ray the most important part of this generation

[MikeB]

@ RolStoppable

Games for PS3 are a huge risk for developers. Development becomes expensive due to the high detailed HD-graphics, blu-ray discs are more expensive to produce than dvds and the currently small userbase of the PS3 makes it nearly impossible to turn good profits from a game for 3rd parties. This is reason #1 for the 3rd party exodus now: money.

Although you add a strong point into this discussion, note that distributing games through the PSN is a very cheap alternative available to PS3 developers. WIth regard to the bigger projects, they have the resources.

Blu-Ray disc production costs are dropping quickly and with regard to movies is now generally cheaper than HD-DVD, as many / most HD-DVD movies use dual-layer discs and Blu-Ray movies are currently supplied on single layer discs.

Note that the average game is priced way above Blu-Ray movies, so with regard to games the added cost is less of a factor as compared to movies (percentage of the total revenue).