The collapse of HD-DVD (and victory for Bluray disk) in the past week also scrambles the Microsoft XBOX 360 v. Sony PS3 race for second in the console wars. Microsoft has been benefiting from the next-gen video wars because, not only did XBOX 360 support HD-DVD through an add-on while the PS3 had integrated BluRay, XBOX 360 also supported on-demand video downloaded. Thus Microsoft benefit from a win or a draw, while Sony needed a knock-out. (Sony created the Bluray technology, int the same way that company created Betamax.)

Sony got its’ knock-out.

Up until now, PS3 sales have been depressed because of the BluRay add-on (who wants to gamble on the next-gen video tech when buying a game machine?), but now its benefits. The XBOX 360′s HD-DVD player is now worthless going forward, while the PS3 both will play next-gen movies. You’re now longer gambling when you buy a PS3. You’re buying a next-gen player that will play filsm that come out a decade or two from now.

Hard to believe this won’t increase PS3 sales, which will in turn lead to more game development, which would lead to more sales.

Sony gambled big by including a BluRay player on the PS3. Sony won.