According to this article on the Reuters UK site, disappointing sales of movies and other media on Sony's proprietary UMD (Universal Media Disc) spells doom for the format. And how about that dig by the Universal Studio's rep? It seems Universal isn't too pleased with Blu-Ray's potential either.
"No one's watching movies on PSP," said the president of one of the six major studios' home entertainment divisions. "It's a game player, period." Observers speculate the studios released too many movies, too fast. Within five months of the PSP's March 2005 launch, 239 movie and TV titles already were either in the market or in the pipeline -- a significantly higher tally than games, according to the DVD Release Report."