Apparently there is a format war going on between HD-DVD and Blue-Ray, but with the wide selection of HD-DVD players on the market and the cheaper price, superior features that HD-DVD has I was betting on that winning, but then I read This and that just confirms it.
Essentially there will be no Porn on Blue-Ray. All the Porn film distributors are being forced by Sony to use HD-DVD as their format. To clean minded people this might sound like a none issue, but Porn is big business and people with dirty minds want their Porn.
I can think of a few business decisions that are probably worse, but they where all made thorough mostly negligence or naivety. So whoever at Sony made this call deserves to be credited as making the worst business decision ever.