TAJ, the BRD group has focused on the MPEG2 because only the re-writeable BRD spec is complete.....
All optical recorders(DVD, AOD or BRD) *MUST* have MPEG2 decoding if they plan on archiving broadcast HDTV content, which is encoded in MPEG2.....
The AOD/HD DVD group have downplayed the fact their recorder *MUST ALSO* use MPEG2 for recording because the BRD group have only talked about MPEG2....
The BRD group realize the PR disadvantage of not mentioning potential advance audio/video codecs (like VC9 and/or H.264) that could be used in their (still incomplete) BRD-ROM format......
This is why, at the Blu-ray Summit, Sony's Mike Fielder recently made noise about "evaluating advanced codecs" for use in the BRD(ROM) format...
According to a friend of mine @ Dolby Labs (who shall remain nameless) AVC H.264 has already been privately approved by the BRD group and VC-9 is just about a lock for BRD ROM as well....
Sofar, the BRD group has seen the HD DVD format gather steam/support so they have systematically tried to address all the "issues" people have with BRD (Caddies, production costs and now advanced AV codecs)....
I can't even imagine how much high quality 1080p video would be able to fit on a pre-recorded 200 Gig BRD ROM disk using VC9....
Actually...YES I CAN
AHEM....
VC9 is around 250% more effcient than MPEG2 @ equal bitrates....you can fit around 4.5 hrs of 1080i video on a 50gig BRD....1080p is double the data, so now we are talking 2.25 hrs of 1080p on a 50gig BRD....if we use a quad-layered BRD ROM disk, we are talking about 9 hours of 1080p video, just using MPEG2!!!
If we encode using VC9 then you are talking about *TWENTY-TWO-AND-A-HALF* hours of 1080p video than could fit on a quad-layered BRD ROM disk!!! (9 hours*250%=22.5 hours)
.....not bad
DCharlie....the $65b figure is the total R&D investement of the entire BRD group sofar....although Sony is the most vocal mouthpiece of BRD, many others within the BRD group have contributed tons of money and engineering effort to BRD.....Matsushita and Pioneer Electronics especially....
Faf, Japanese PC magazine Asahi PC published an interview with Kiyoshi Nishitani from SCEI in which he said that he is currently working with Sony to enable BD-ROM playback on the PS3.
http://www.cdfreaks.com/news2.php?ID=9446
PlayStation 3 will have a BRD-ROM drive, IMO