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$22 BluRay discs are already showing up at the local Frye's, which means they'll sell like hotcakes. More importantly, a $299/299EUR PS3 will rocket-jump Bluray sales in the booming BRIC nations (Brazil Russia India China). Pirated DVDs will still be around, but the new middle class of those nations will start buying legit discs.

Lots of people may not realize this, but BluRay was not just a superior technology (due to simple physics: shorter wavelength = more storage), it was also a bet on the future growth of the BRICs. It is a bet which will pay off, big time.