I'm not an expert on this nerdiness, but my understanding is this: HD-DVD has the advantage of being a cheap to manufacture upgrade to existing DVDs, while Blu-Ray has more storage capacity. I would think cheaper would be better, but with Sony putting their PS3 behind the Blu-Ray, it's going to be a tough call.
Until now? Toshiba develops Hybrid DVD and HD-DVD
The resulting disc conforms to DVD standards and can be played on DVD players as well as standard HD-DVD player too with a firmware upgrade.
But wait... doesn't Blu-Ray also have the ability to play DVDs? Blu-Ray.com
JVC was showcasing their BD/DVD hybrid media (33.5GB), which was developed to ease the transition from DVD to Blu-ray by creating a disc that will play in both BD players and DVD players. The hybrid disc is basically a single-layer BD-ROM (25GB) and a dual-layer DVD-ROM (8.5GB) in the same disc, which can be read in both players as the Blu-ray layer is transparent to the red laser used in a conventional DVD player.
Now I'm just confused again.

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