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The wii is going to die out now...
Blu-Ray offers a lot of potential, but as long as publishers are still releasing titles on other formats then it won't have the impact Sony hope it will. Until we hit a point where numerous publishers are saying "We can't do this without Blu-Ray" then the market is still open to all.
In any case, good news for the Blu Ray, shows more of their potential with a damn good looking game like that.