Now that the dust has finally settled on the next generation DVD format war--with loser Toshiba (backed by Microsoft) taking a $1 billion hit on the failed HD-DVD format, Sony and it's Blu-ray Disc supporters are offering new options for PlayStation 3 owners and anyone who's bought a recent stand-alone BD player. Sony's PS3 just released an update that will support BD-Live, which allows movie viewers the ability to download video content, ringtones, games, and more. In addition to BD-Live, the PS3 system software update (version 2.20) will enable photo and music playlists on PS3 to be  copied to PSP. The PSP already connects to the PS3 to allow for remote viewing of content off a Wi-Fi enabled house and PS2 games can be downloaded from PS3 to PSP.

On the BD-Live front, PS3 owners with a broadband connection and at least 1GB of storage space on the hard drive can download bonus movie scenes, shorts, trailers,and subtitles. They can even purchase ringtones and images that can be sent to a mobile phone. BD-Live also opens the door for interactive movie games that can offer online multiplayer support, something that DVD gamers cannot enjoy.

The first movies that support these features are from Sony Pictures Home Entertainment. Shipping on April 8, both Walk Hard: The Dewey Cox Story and The 6th Day will include exclusive downloadable content that goes beyond what is
available on the actual Blu-ray discs. These include upcoming theatrical and home video movie trailers as well as a video that explains the features of BD-Live.

The last PS3 upgrade already included the ability to stream two audio tracks simultaneously to allow for picture-in-picture movie playback while a separate window featured making-of like 20th Century Fox Home Entertainment's Sunshine release showcased. Upcoming movies will support the latest PS3 upgrade.

The latest software update also adds some other features to movie playback. Anyone who's watched a movie on Xbox 360 knows that it keeps track of the stopping point after it's been turned off. Now PS3 will do the same with BD and DVD movies. PSP can now be used as a remote control for PS3 movie playback, as well. The PS3 Internet browser will now allow video files directly linked from a Web page will be able to be streamed, and the browser's view speed will be improved. In addition, DivX and WMV format videos that are larger than 2GB will be playable.