It would have been better if movies would stay on DVD and are being compressed with the DivX method. The better DVD players already support the DivX 6 codec, giving the possibillity to play HD DivX movies (as long as you have the "right" tv). Ok, we consumers would have been paying extra for the royalties DivX Inc. is getting, but that would be compensated with the lower costs for the disks.
When it comes to games however, for those we will need the Blue-ray disks in the near future. But that's ok as long as game publishers take the loss (generated by the initial disk costs) for the time that the disks can not be produced cheaply.
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