I'm actually refering to the project they were in the early stages of developing when the (IMNSHO) amazing DreamCast died. Yes I loved that system too (and the Saturn blew everyone else off the map at the time, Mine (with a laser conversion, Linux, and new EP-ROM) can play XBox and PS1/2 games.
What they were working on would have killed everyone else. A system with 100% backwards compatibility, Sega Linux preinstalled, a DVD player, DVR video recorder, tuner MPC system that would have dug into both home system sales and Computer sales. If development and production went on track as it was supposed to, it would have been based dual core procs with Intel's I64 instruction set (probably would have ended up on Omega Athlon x64). nVidia graphics. Creative sound (The X-FI system was developed for SEGA). To bad the media killed of the DreamCast. They killed off SEGA's next generation at the same time.
That's what I see happening in the HD-DVD ring. Researchers for Toshiba et al have been working on Triple Flippers. 6X the space and storage of standard HD-DVD. Think about the possibilities that would bring. How about Alien, the entire series, in full HD on a single disc. Whole seasons of HD TV on a single disc. A full TV SERIES in a 6-8 disc set.
BluRay, because of what I consider to be a design flaw reads at a much wider angle than HD-DVD. They simply can't go much farther beyond where they are now in terms of space. With an self-adjusting laser, HD-DVD could, in theory and as they are testing, go to 2 sides at three layers each.
Not to mention that HD-DVD is not just consumer friendly but also EVERYBODY friendly in it's lack of enslaving releasers to Consumer Restrictions Management.
I'm not so much worried that HD-DVD will be gone in as much as I'm worried that we won't (2-5 years from now) have any name Western films on the format. Ocasionally I like to take a break from watching Asian, African, Eastern European, South American.... films. Just like American/Brittish films were on VHS and Everyone Else's films were on VCD, American/Brittish films will be on BluRay and Everyone Else's films will be on HD-DVD. Will I be forced to buy a new BluRay player every time a new Rights Restriction comes along? How long must I pay someone to take my rights away? BD++ BD+++, BD-fool-for-buying disc is to big for the computer drive but fits in our new $1200 player+???
BluRay will crush the independent film scene in the West. It's already having an effect. By taking over, it will kill off most access to (again IMNSHO) superior foreign films as well, much like what happened with VCDs.