The difference here, assuming the statement is correct, is that Sony is trying to encourage Blu-Ray sales for their own benefits while Microsoft tried to encourage HD-DVD sales to sabotage Blu-Ray sales. That sounds like a douchebag move.

Totally with you on that.  Between XBLM and OnDemand HD Pay per View, I am all set for HD content.  I haven't been to a Blockbuster in ages, at least not to rent a movie.  I don't care to own copies of the movies I watch, so I really don't care if I'm watching them on a disc, a hard drive, or streaming them.  It makes no difference to me.  As long as it's HD, I don't care about the physical media. 

The invention of the MP3 format has instilled that attitude in people.  Hell, the last three "albums" I've bought have been from Amazon.com's DRM free store, and I used to be the kind of person who always bought the CD itself.  Now that I can carry all my music with me wherever I go, who needs the discs?  As long as I remember to back things up in multiple places, I don't care about having the actual CD anymore. 

People are starting to realize that we don't need plastic disc media anymore.  All you really need is a good internet connection and/or digital cable service and you're all set.  Plus, going digital means you're going green as well.

You mean the CD that was invented by Phillips Magnavox?

Says the party who backed HD-DVD, how ironic...

Sure we Dutch would not mind if we could claim full credit for Philips, a Dutch company, with regard to the R&D of the Compact Disc. However that's not really the case. Philips gets full credit with regard to the development of the Compact Cassette, but after Sony's distant long forgotten (ahem...) failed Betamax attempt and Philips' later failed attempt to go against VHS with Video 2000, the companies combined forces to ensure success for the release of the Compact Disc.

Although Sony plays a leading role in the R&D of the Blu-Ray format, a lot of different companies including Philips are involved. Royal Philips Electronics has various Blu-Ray related patents as well.

Actually HD-DVD was the LAST UMD. 

UMD is far more successful than HD DVD, which was solely a money pit for Toshiba. UMD will be supported (mainly as a gaming format) for much longer than HD DVD was.

The success of the DVD format was ensured by Sony and Philips through joining forces to prevent a format war. Toshiba and Microsoft bullied other companies (The DVD consortium was intended to be democratic, but Toshiba with its leadership role prevented a positive outcome and changed the voting rules for adopting a new standard), wanting others to adopt a technically subpar quality standard using far less open technology.

This resulted into the bulk of manufacturers and content publishers to back the Blu-Ray format.

This is so reasonable I love it!  Spot on too IMHO.  MS looks like its going to stick to digital, Sony looks like its going to go for both digital and physical.  MS downplay physical as per marketing handbook 101.  The end.

I say the same. I'm happy with physical things.

That ain't matter, both companies had a plan and used their customers to make that plan work. MS had a good system with good games, acceptable price (don't remember the price, tough)  and didn't force anyone to pay 100-150$ to watch HD movies, on the other hand Sony had a good system with almost no good games and forced you to pay 500-600$ to watch HD movies and play videogames. So in that point of view who's worst, the one that offers something that justify the price (mainly because it's cheaper) and gives you options or the one that offers something tha doesn't justify the price and don't give you options?