Gearlog : Update: Happy Blu-Day! — Here’s a story that is getting picked up everywhere. I wonder how long it will be before Sony gets a clue that its credibility is on a steep slide downhill. This company is at risk and doesn’t seem to know it.

There were, of course, some more recent vintage products on display like the Sony VAIO XL2 Digital Living System but the true stars of last night’s event were Blu-ray, a new Blu-ray VAIO (the AR) and a near-pocket-sized “Micro PC,” the VAIO UX. The gorgeous, 17-inch laptop not only has a Blu-ray player, but the drive can even burn Blu-ray discs — a true first.

On one table Sony execs proudly displayed two ARs playing early Blu-ray content: The House of Flying Daggers (below). They even had the Blu-ray packaging. So exciting…but WAIT! I went ahead and ejected one of the Blu-ray drives to see my first Blu-ray disc. Instead, I found a crummy, old school DVD+R, complete with the Sharpie-written, House of Flying Daggers. Apparently even Sony can’t get its hands on Blu-ray content!