Not good for HDM in general.
Silver lining though: Time is HD DVD's enemy. Blu-ray's 1.1 and 2.0 Profile specs will close the interactivity gap, and time will see Blu-ray hardware coming down to match HD DVD. It will also see replication costs for Blu-ray coming down much faster, since Blu-ray presses way more discs than HD DVD, courtesy of the PlayStation 3. Should Blu-ray hardware make it into the same ballpark as HD DVD, HD DVD has zero chance to win IMO.
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