The battle between Blu-ray and HD-DVD isn't limited to just the movie industry. The two formats are expected to duke it out at this year's E3. While Sony will be showcasing the Blu-ray equipped Playstation 3, Microsoft is expected to unveil an external HD DVD drive for the Xbox 360.
While most gamers are heading into the Electronic Entertainment Expo (E3) hoping to view the latest and greatest in video games and consoles, a key subplot will be Sony Corp.'s plan to use the PlayStation 3, the newest version of its market-leading video game console due late this year, to get its Blu-ray high-definition DVD standard into homes.

By offering DVDs with far more capacity than current standard DVDs, studios hope to breathe new life into the $24 billion home video market. But their failure to use a unified format has paved the way for a costly battle similar to the VHS/Betamax war that caused widespread customer confusion in the late 1970s through mid-1980s.

There are two rival next-generation DVD standards, including Sony's Blu-ray and HD DVD, championed by Toshiba Corp..

While Blu-ray has drawn more support among Hollywood and electronics firms, HD DVD has garnered an ally in software giant Microsoft Corp., which plans to offer an external HD DVD drive for its Xbox 360 game console that will turn it into a high-definition DVD player.
While Sony has not announced a price, the PS3 is expected to run about $499. While not exactly cheap, its a great deal considering how much stand alone Blu-ray and HD-DVD players are expected to go for. If you'd like to read more, the entire article can be found here.