It payed off in 2005 as it allowed the 360 to launch at a more reasonable price and earlier then the PS3. Now it is paying off as it looks like HD-DVD is going to be losing the HD format. If blu-ray ever becomes mainstream they could just come out with a $99 player or something and make those 360 owners looking for the format happy.
Of course there is that other aspect about future games needing the extra space and if that is the case then it will just be something to deal with. I don't think it will be an issue but obviously some disagree and we shall see.
As someone who had stopped buying DVD's years ago this whole format is a mute point especially once people start getting used to streaming or downloading right from their TV's., 360 or PS3
