I think he thinking a little be more on the long term plan. If blu-ray does lose out the movie fight, it wouldn't be wise to continue making games on the format because any future console would also have to have a blu-ray drive to have any backwards compatability. So if they go to HD-DVD in the future for games, they'll need to put a combo drive in the system which would be expensive. Microsoft on the other hand, though they won't admit to it, was wise when they dicided to stay with DVDs for games. That way they wouldn't have the same problem that Sony is likely will face.
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@nxtiak
I think he thinking a little be more on the long term plan. If blu-ray does lose out the movie fight, it wouldn't be wise to continue making games on the format because any future console would also have to have a blu-ray drive to have any backwards compatability. So if they go to HD-DVD in the future for games, they'll need to put a combo drive in the system which would be expensive. Microsoft on the other hand, though they won't admit to it, was wise when they dicided to stay with DVDs for games. That way they wouldn't have the same problem that Sony is likely will face.