No, not Blu-Ray, it was GREED that killed Sony.
They wanted to dominate the video game & movie market. They wanted to own the next format for movies and tried using the popularity of the PS2 to shoe horn Blu-Ray into homes by sticking it in the PS3 and have the gaming community(probably the healthiest candidate for hardcore early adopters) pay and pave the way for Blu Ray.
BUT...With movies like TRANSFORMERS not comming to BLu-Ray, well, Paramount and Dreamworks didn't want Sony to own such a huge share in gaming and movies and decided to go HD-DVD.
The name brand didn't hold its strength after all the battery, firmware and unreliability issues happene, not to mention the sheer arrogance of Sony's PR.
So now, Sony's stock has only increase ONE DOLLAR from this very day a year ago and Nintendo's has tripled whith Halo 3 and another bad PS3 christmas around the corner.
Sony's greed and underestimation of the gaming community costed it its thrown.
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