The good news coming from this announcement and the LG dual player announcement is the fact that studios & CE manufacturers view HD-DVD as a viable force that cannot be ignored. Combine that with the fact that Circuit City (until recently the biggest anti-HD-DVD company around) is now actually selling the Toshiba A2 in their stores, and it leads to an obvious conclusion -- Blu-Ray is not winning anything and public opionion has swayed. If Fox and Disney continue their exclusive support of BD throughout 2007, they will certainly be looked upon with disdain and will take even more heat for their stubborness.
The bad news, however, is that HD-DVD (and BD, for that matter) releases will most certainly suffer from new limitations found in these discs. It's obvious that BOTH versions will not be dual-layered, if any at all. This makes capacity a major issue. What about the Combo disc that studios found so intriguing? I'm sure they won't be putting three layers on a disc anytime soon...and if they did, what the hell would it cost?!? As previously mentioned, what about the color of the case? A minor point, to be sure, but this will become even more confusing for a general public that is already scratching their collective heads with this format war to begin with. How do you fit extras for both formats on one disc, along with the lossless tracks and HD picture? What glitches may result in fusing all these layers together with different disc structures? Too many variables to consider here. Maybe it will work seamlessly, but I have my doubts that something won't suffer. It would be so much easier if every studio went neutral & let the public decide, but I think everone knows that HD-DVD would eclipse BD almost overnight with this scenario.