The Chinese format is actually technically called CBHD (China Blue High Definition Disc). Toshiba basically licensing HD-DVD to Chinese companies that are selling drives and discs in China for less than Blu-Ray.
This actually probably makes it less likely Nintendo would go this route though since China is a haven of piracy, I'm not sure they'd want to touch a Chinese HD-DVD knock off with a 20 foot pole. Maybe if Toshiba had kept the patents to themselves and sold them exclusively to Nintendo ... that way no one else could use them in this manner.
If Blu-Ray does not take off in China, that probably improves it's anti-piracy features really.
If Nintendo only has to pay Panasonic a fee for the Blu-Ray drives ... that works great, because they could very easily make the drive "propietary" and then technically the game discs are not actual Blu-Ray discs even if they're based off the Blu-Ray tech and not pay Sony even a cent.
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