You know both the Blu-Ray and HD-DVD formats may fail.
Even thought both boast more storage space than DVD's and have a lot of support from major companies both formats may still fail. The failure may be due to the reasons being that neither format currently is not necessary for movies, video-games, or music. I suspect within 3-5 years we will slowly be seeing the necessity for larger storage spaces. However that's 3-5 years and in 5 years new next-gen consoles will be released. The benefits of these formats would be useful for the next next generation.
That and I'm pretty happy with DVD's. The transition from VHS to DVD was quite necessary and in fact was a major leap.
1. DVD's did not require rewinding
2. Picture quality was extremely superior to VHS
3. Cheaper
4. Held much more space
5. Conveniently small and easy to store.
The only reason I see to get either HD-DVD or Blu-Ray is more storage space. However with the recent development of hard-drives and newer formats both HD-DVD and BR's future look bleak. Hard-drives with some few terabytes are hitting the market around 2007-2008.
In terms of gaming the most advanced and gigantic game out right now such as World of Warcraft, Elder Scrolls IV: Oblivion, Half-Life 2 only reach a maximum of 5GB. As of right now there aren't any games that require that much space. Maybe in the next 5 years which is when HD-DVD and BR should have been pushed. It's too early.
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