The PlayStation 3 will also play Blu-Ray movies.  Needless to say, millions will buy the PS3 when it is released this fall for the games, and the Blu-Ray is an added benefit.  I am not sure that there will be nearly as many HD-DVD players sold at that point (especially if most movie consumers are waiting to see which format will win).  Gamers however will buy the PS3, even if it weren’t able to play DVDs, the Blu-Ray is just another feature.

So if I were a movie studio exec and wanted the largest market for my high definition DVDs, Blu-Ray seems like the logical choice since there should be many more consumers with access to a Blu-Ray player (PS3) than an HD-DVD player.  Brilliant strategy by Sony IMO. 

Of course, I could be wrong.

 -Dan