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I thought they'd be trying to keep hd-dvd going as a data storage format. They've got the format running, it's cheaper to produce than blu-ray... surely there's plenty of room for a technology like this, even if the home viewing market has been lost.

I wonder if this means all the next generation consoles will go blu-ray.

Microsoft would be pretty keen to go with d/ls, but surely the technology and infrastructure's not there yet.