Absolutely true.  As well as BR is doing against HD-DVD, it is still a tiny fraction of overall home-movie sales.

I wonder how much they had to spend to ramp up for BR... that could make a lot of difference. 

You're saying it doesn't make financial sense that you can just sell DVDs instead of  BDs, especially since BDs are only a tiny fraction of the market?  

DVD had a variety of tangible advantages over VHS for both home users and movie studios that BD simply doesn't have over DVD. It had surround sound for the first time, it didn't lose image quality upon repeated viewings, it supported widescreen in many iterations, color and resolution was noticably better for 100% of the TVs in living rooms. DVDs were also much, much cheaper to produce. It was also clear that DVD was the technology going forward, whereas BD has online delivery as a huge competitor.

DVD was also not VHS backward compatible.  So if a person had a DVD player, you could not also assume they had a VHS VCR.   

At this point, Sony has taken a gamble with BD and they've basically gone all in. And it looks like there is a chance the gamble will pay off but there is also a very real chance that they'll never recover the money they put into BD.

Yeah, you're dumb lol.

Disney is 100% behind bluray, they have always publicly spat in the face of toshiba and the obsolete hd-dvd format. What a stupid thing to post..vgchartz should fine idiots like the OP for this kind of garbage fanboy bullshit lol..

Your "friend"..if he even exists lol, is probably one of those gimpy snow white dwarves runnin around Disney World hugging little kids lol.

This is highly unlikely.  Why wait until the format war is finally beginning to end to do this? 

And yes, the studios are making money on these formats, even if only a little. To quote an article from TigerWeekly concerning Warner's move to Blu:

 Shhhhhh let them believe :3

Hi, first post.

This is very probably rubbish. I say this as Disney is on BR commitee I believe, Jobs seems behind BR, and perhaps most importably Disney has just announced its first high profile BR releases of their 'classics' for later in 2008. Also sales of Pirates, etc on BR were very good I believe - plus I'd be amazed if they weren't already getting promotion backing for the upcoming releases from the BDA.

Also, I never trust 'a friend happens to work' rumours. Sorry Coca-Cola, just my personal policy in life.

1.  You know people never believe "a friend who works for <insert company here> told me..." stories and for good reason correct?
2. Friends that work at Disney World don't count.
3. If there were people here that worked at Disney do you think they would be dumb enough to say anything?  Even what your "friend" said to you would be enough to get fired.
4. Even if I were to believe this for a second, it's one of the dumbest rumors I've ever heard.  Give me one good reason why Disney would drop BR?

DVDs account for approximately 50% of the profits made by hollywood. $63 million in revenues is truly a tiny drop in the bucket.  That's much less money than I anticipated for a format that approached 1% of the home video market last year, and commands a significant premium in cost over its predecessor.

Smart move DVD will be here much longer and those new formats was already dead when they hit the store.

@OP: that would be moronic on a whole new level if you ask me. "No, no, the Dreamcast is not doing too shabby, let's support it!"