For months, Sony's (SNE) PlayStation 3 video game console has seemed like a high-profile boondoggle for the Japanese giant. While Microsoft's (MSFT) Xbox 360 took an early lead that it later forfeited to Nintendo's Wii machine, the PS3 always lagged behind. Worse, the machine's next-generation Blu-ray DVD player and other pricey high-tech parts, which pinched Sony's profits last fiscal year, look likely to weigh on earnings again this year and next. And analysts are skeptical as to whether Sony can meet its sales forecasts for the console this year.

But you won't hear Chairman and Chief Executive Sir Howard Stringer badmouthing the gaming machine. That's because the millions of PS3s the company has sold since late in 2006 likely clinched Warner Bros. Entertainment's (TWX) exclusive support for the Blu-ray format.

Blu-ray takes a market jump... What make it better over HD-DVD...