Porn studio Digital Playground, which claims to have produced the largest number of high definition movies in the industry over the past three years, said it is choosing Blu-ray Disc for all of its 'interactive' films because of its greater capacity. It also selected Blue-ray because Sony chose the format for its PlayStation 3 (PS3) box, due out in November.

The co-founder of Los Angeles-based Digital Playground, who goes by the one-word name 'Joone,' said the fact that Sony chose Blu-ray guarantees his studio an instant home audience.

'PlayStation 3 is going to be the Trojan horse that will get a lot of numbers into the home theater systems -- the living rooms,' said Joone, who is also a movie director. 'Technology-wise we've chosen Blu-ray, which doesn't mean we won't support both formats ... but as far as having really cool technology and a lot of storage for future proof, Blu-ray is a good format.'

Blu-ray Disc and HD-DVD are the new optical-disc formats that are positioned as replacements for DVDs with high-definition content.

Blu-ray is not only backed by entertainment giant Sony, but Panasonic, LG Electronics, Philips Electronics and movie studios Disney and Fox. Blu-ray offers storage up to 50GB capacity, or up to nine hours of high-definition content. In contrast, HD-DVD has 30GB capacity and is supported by companies like Toshiba, NEC and Warner Home Video.