I just want to point out that HD-DVD is still alive, its alive in China and that format is beating out Blu Ray in that market by a considerable margin. If they retain disc based media and want to produce the cheapest option around from a licencing perspective it will be based on that format. The flip side bonus is that HD-DVD will be impossible to pirate as the media will not be available in a few years anyway.
Furthermore if they use Blu Ray they will be paying their fees to Panasonic rather than Sony on the per console basis. Sony holds the patents in the discs, Panasonic in the players themselves (mainly).
Tease.







