There are already BluRay/HDDVD combo drives out there (circa £250 about a month ago). Are they likely to embrace this too ?
Seems to me that if it only involves a firmware thang, then existing drives can be very embracing (up to a point).
On the other side of this, if the VMD comes out at a spankingly lower price than either of these, then the market will be forced to use them, in a fashion.
If pc users `naturally` spawn onto VMD, and no doubt the illegal-people will grab hold of them, due to their price - the movie sellers could be forced by means of their concern to get their product in the houses.