I have some serious problems with this. Sony has shown they love to create proprietary formats like their Memory Stick, which only serves to allow Sony to control the market and limit consumer choice.

To add to this, Blu-Ray players are significantly more expensive than HD-DVD and they won't play DVDs. Great, now I have ANOTHER component. Sony is fine with this though. Their solution is just to re-purchase all the movies I already own and ditch my DVD player.