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MikeB wrote:

Due to mass production, Blu-Ray related production costs have already dropped significantly. HD DVD and Blu-Ray disc production costs are now about on par, in some cases scratch/smudge protected Blu-Ray disc production is even cheaper.
Here's a good in depth article relating to this. "In fact, we found that Blu-ray is actually cheaper per GB in many situations! It is also interesting to note that at this point, most HD DVD-ROM movies are DL, while most BD-ROM movies are SL, which would make HD DVD more expensive to replicate in most situations." @ mrstickball
Always trying to compare a useless HD-DVD to the PS3s Blu-ray. The argument is baseless. The HD-DVD is only there for movie playback, nothing more. Therefore, there'd be no real need for the HD, as the HD is for gaming, not movies. You can complain about how HD-DVD is worse, but it's still a format for media only. There's a reason why MS didn't want the HD-DVD or Blu-Ray as a built-in drive.
Everyone is of course entitled to an opinion. I think Blu-Ray will offer significant advantages with regard to game design, I expect this will result in larger more complex gaming experiences (even launch games like Resistance and Motorstom with 7.1 audio have already outgrown the storage capacity of DVDs). You are right however there are considerations to stay with DVD, but I think they are mostly cost related. DVD drives are much cheaper so this results in a cheaper and easier to manufacture end product, but for the long run IMO Sony has made a wise decision. Personally I would be very dissapointed if the PS3 like the PS2 would come supplied with a DVD drive by default. The scratch resistance of Blu-Ray discs is IMO already a huge advantage next to more storage capacity, I view Blu-Ray movie playback as a very nice added bonus.

Naughty Dog: "At Naughty Dog, we're pretty sure we should be able to see leaps between games on the PS3 that are even bigger than they were on the PS2."

PS3 vs 360 sales