Blu Ray has been doing well for itself in 2007 but a new feature from the HD DVD camp may make all the difference. 3X DVD, a DVD format only available on HD DVD players, can shrink HD DVD content by either using new encoders such as MPEG-4 and VC1 or, by lowering the resolution to something like 720p to make HD content fit on a standard 9.4 GB DVD disc. As a result, if 3X DVD technology takes off, HD content could be put onto existing DVD discs and provide manufacturers a way to sell more affordable HDTV content.
The 3X DVD spec takes that a step further, while it's a part of the HD DVD format and apparently only compatible with HD DVD players, the discs themselves are physically exactly the same as standard red-laser DVDs. Throw in a software upgrade to support high definition content, HD DVD's UDF 2.5 file structure and AACS and you have a way to deliver HDTV content on a 9.4 GB DVD. By using newer encoding technologies like MPEG-4 and VC-1 and/or lowering the resolution to say, 720p, full length movies easily fit on a standard DVD.