Blu-ray's value for gaming is only that it can store more on a disc. Both NextGen DVD formats do this but Blu-ray can do more which is fine.
I predict that when Microsoft and Nintendo go NextGen DVD it will be a multi-format player that does both Blu-ray and HD DVD. Will this make Sony richer? Yes...
But, it will also make Sony get a different player that can do both formats which none of their blu-ray players can do today. Sony will continue to get format royaltes, but they will probably buy a multi-format player from one of the multi-format player vendors in the future.
Also, in 3-5 years I can see more and more games being distributed digitally and not through media. You can see it already with the success of digital downloads of games on all three consoles. It will only keep improving. As well, movies and tv shows are becoming more and more popular in digital distribution. There will always be media distribution, but it's use will become rarer and rarer as time goes forward.
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