Please help me choose; Blu-Ray or DVD?

Well, if you have asked this question that would mean money is a major issue. If you look at ROI on a DVD player it's definitely higher than for a BluRay. There are very few titles for blu ray right now in the market and will take about 2 years to become popular and affordable enough to really go out and make a collection. The 2 realistic choices are, as you mentioned: 1. Buy a PS3, it has more uses than just a BluRay player 2. Buy a DVD, you will extract full value out of it in the two years by which time Blu Ray should become easily accessible( read affordable). I dont see a dedicated Blu ray player as a feasible option right now.

You have the same problem many consumers have. I can't answer for you, but here are some things to consider: Blu-ray is likely to become a major format (but may or may not replace DVD). It could remain a premium niche format (25-40% of market). DVD isn't going to disappear any time soon. DVD is less expensive than Blu-ray (players and disks) and, while prices will come down for Blu-ray they will remain higher than DVD. Blu-ray on a 37" (or larger) HDTV (720p or 1080p) will generally look and sound better than upscaled DVD. But the difference is not major until you get onto 50-60" screens or more. The difference depends on the equipment and the movie though ... some Blu-ray is only marginally better than DVD on even the best equipment, others are noticeably better on fairly small screens. Blu-ray players all play and upscale DVDs (while DVD players don't play Blu-ray). So a Blu-ray player can be used to play mainly DVDs while a DVD player will ONLY play DVDs. Blu-ray players can be purchased for less than $200. You DON'T need to buy a PS3. The PS3 is a good player, but unless you want a gaming console it doesn't make sense to pay the extra cost. The PS3 is also very energy hungry since it uses 2X the electricity of a stand alone player. For comparison a reasonable upscaling DVD player will cost $75 (or more) so a comparable quality Blu-ray player is not that much more expensive. Remember that over time the cost of the player is a small part of the overall cost of player and disks (whether you rent or buy). I suggest you consider buying a Profile 1.1 Blu-ray player now (find one on sale) for about $200 (Profile 2.0 sounds sexy, but it's problematic, more expensive and unnecessary) and use it primarily as a DVD player. Then as prices come down and availability of Blu-ray disks goes up start buying Blu-ray movies if you find the performance/price ratio is favorable (in your opinion) on your equipment. If not continue to buy mainly DVDs. I find that not all movies warrant the extra cost of Blu-ray ... but you may feel differently. Hope that helps.

Okay, I say invest for the future - i.e. Blu-Ray If your movies collection is on DVD, in a few years you will probably move to full HD anyway, and you won't be able to watch all your favorite movies in standard definition. Not because it wouldn't be technically possible, but because once you go HD you can't go back, and DVD will look like VHS to you :-) So I say get that PS3, invest in Blu-Rays, and future-you would appreciate it. However! Before you buy your HDTV, you need to know how well it downscales an 1080 signal to 720p. It may need to be able to accept 1080i for better conversion to 720p, I'm not sure.

I would look at what movies are out in Blu-Ray that you would want to buy. There's no question the picture is a lot better... but only if the movies you want are available. I bought a PS3 partly for gaming, and I really enjoy movies on it, but I've only rented a handful. So much of what I'd want to see isn't on Blu-Ray, so if it was only for movies I wouldn't have gotten the PS3. If you shop around you should be able to find Blu-ray players for less than $500... now that HD-DVD is extinct, there are several Blu-ray players that aren't a PS3.