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Just FYI, the quote from Jaffe about blu-ray is from GT's "Bonus Round" show which you can watch at gametrailers.com, here:  http://www.gametrailers.com/bonusround.php?ep=4&pt=2

Some interesting perspectives, particularly the 2-part Jaffe interview.  There are 2 more parts of it yet to be released, including the part where the blu-ray statement is put into context.  The only quote we know for sure (from that show) is a short clip of him answering a question about what he wouldn't have included if he had to choose and he said blu-ray so that the PS3 could sell for $400.  That's a reasonable thing to say. 

There was a thread on this forum debating whether or not Sony should not have gone with blu-ray.  If blu-ray wins I think it might be worth it, but would have releasing the PS3 sooner and cheaper made a big difference?  We'll never know, but it's not a hard argument to make that Sony would have had an easier time in the console war without including blu-ray due to costs and manufacturing problems.  That is very apparent.  Obviously, including blu-ray in the PS3 helps them in the blu-ray war.  Personally, I think blu-ray is going to win and it will end up being ok, but only time will tell.  Also, free online games and wireless and blah blah that I keep having to mention more than offsets the cost already, but not necesarily to the average consumer (and many on this board).

Blue Dragon already being 3 discs already shows the benefit of blu-ray's extra space.  RPGs and other games will only get larger and more content added.  Being able to play blu-ray movies is a nice bonus to me, especially considering that players of any HD format are still $350 and above, and the PS3 is still the best blu-ray player out there (according to a recent UK review). 

Also, dual-layer DVDs read slower so the reading time is offset by the constant read of blu-ray discs.  Blu-ray discs also can hardly be damaged no matter how hard you try.  Scratches are still a problem for DVDs, in case you forgot.

Anyway, the exact context of what he said will be shown soon.  I like Sony's response (google news searches) saying Jaffe can say whatever he wants, he's earned it.  Jaffe also admits that Sony knows better than he does.  We'll see I guess.