If you are interested in the "full" history behind HD-DVD vs Blu, read http://www.roughlydrafted.com/2008/02/21/lessons-from-the-death-of-hd-dvd/

 I do no think the "bribe" money happened to be honest, Blu Ray had won in the long term regardless.

 Sony was desperate to finally win a format war though, after VHS and DVD printed so much money for its competitors. Unfortunatly the arrival of the digital download era has and will turn it into a phyrric victory, as Blu-Ray costs, and just as importantly for launch impressions - manufacturing capacity -  dealt a nearly fatal blow not just to the platform but to the entire Sony conglomerate.

wow dude, HDDVD definitely paid UNiversal to stay as long as possible. They were at the final point, the only studio supporting HDDVD, but guess what?
It was WARNER, the publisher sony "Bribed" that released the final HDDVD disc.

get a life.

It will still takes a long time before digital download win anything. Probably we will see another type of format after blue-ray before digital becomes the norm. Im not even sure that digital will ever get mainstream as human in nature likes to have something physical to hold on. It will sure gain in popularity but mainstream I wouldnt bet on that.

I think that since sony saw the first iphone selling at $600, they though that: why not the PS3

 I have been hearing people say that for many years now, but far fewer people say it every year. Massive success of Itunes has played a big part in turning this impression around. Will there be another media format? Sure. But every year hard-media formats are taking huge market share losses to digital distro, and this trend is unlikely to reverse. Blu Ray discs will and do sell, I just do not see them ever selling as well as say - DVD in its prime or VHS is its prime, hence the platform holder (Sony) will see significantly diminished royalties compared to what the VHS and DVD holders saw. It is questionable if the BR royalties will even come close to paying for itself when you factor in the enormous sums Sony spent securing its seat as king.

I don't think Sony are that stupid. Sony innovates and they push creative and tech boundaries. Every console has been expensive and high tec. This time around I think Sony planned on the 10yr cycle. They made the ps3 future proof. They are starting to reap the benefits from here on in. Yes they made stupid mistakes, maybe a little over cocky, but they are sure as heck making up for it. It pretty much has everything... well the 60 gigs do :P

If you read through the older posts I was simply refuting the post that said sony is the "cutting edge of technology" when in all honesty they are not.

Going back to the blu-ray example, bribing movie studios helped them far more than the physical technology they had. In fact, HD DVD had HDi online connectivity compliance MANDATORY for every player ever made from the beginning. Meanwhile blu-ray had no such capabilities until years later.
(I never have owned HD DVD player)

Similarly, Sony's Betamax was superior to VHS but it lost the format war for various reasons not related to product quality.

PS2 was not a well built console at all (rampant disc read/drive errors) but it sold more than any console ever.
(I had and XBOX and ps2 but now I only own Wii)

It is clear that sony is no longer the company it once was with regard to being an industry leader. They are a follower with a diminishing brand name. If I were a Sony shareholder, I'd be very scared right now. In good years, the games unit has accounted for over 60% of Sony's operating profit. Those days appear to be long gone.

But you don't have to my word for it. The following analysts get paid to evaluate current/future performance of companies.

http://www.foxbusiness.com/story/markets/industries/technology/refile-update--sony-pushes-profit-margin-target/

http://www.gamestooge.com/2009/02/16/report-sony-in-major-trouble/

http://translate.google.com/translate?prev=_t&hl=en&ie=UTF-8&u=http%3A%2F%2Fhomea.people.com.cn%2FGB%2F8807545.html&sl=zh-CN&tl=en&history_state0=

Seeing your post history, and how anti-sony you are, Neoraf.

I. Am. Not. Surprised. You. Would. Agree. With. That. Bias. Post.

If you actually think that's an excellent post, their is something wrong with you.

They were definately over confident that everyone would follow them into the next generation no matter how much it cost. Ooops.

You should go read the roughlydrafted article I linked a few posts ago, with the full scoop on why Blu won out. It was not Sony bribing anyone, it was actually everyone rebelling against Microsoft, and 2nd rate MS standards.

Maybe some of what you are saying has truth, but by the same token MS really is not in much better of a position in many respects. Sony has certainly made some mis-steps but has finally started turning things around. They may not recoup their PS3 losses within the next 3 years but they will at least return to profitability.