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Bluray players sell way less then PS3 many own PS3 to play Bluray exclusively my brother in law just bought a 40 gig ps3 to play movies on his 1080p tv my daughters friends have one for the same reason.

Last I checked the PS3 is the cheapest PS3 player to get, It helps Sony and MS to switch over and the bluray players will still play dvds so its probably software related but current games on dvd format will play and the new disks will be made to work on old 360's and new.