An article in today's LA Times adds a little bit to the Reuters report. It seems that a last minute compromise is still possible, but chances of restoring sanity to the HD vid disc situation are getting more and more remote. The LA Times article adds a timeline that would likely have to follow if the two sides reach a compromise -- at least six to nine additional months.

An interesting angle to all this (and from how I read it something that could torpedo any compromise) is that a compromise would also push back the release of the PS3. Given how Micro$oft has been pushing for a Christmas season release for its Xbox 360, I don't know if Sony would want to push the PS3 release back to the end of next year. Much of the PS2's dominance of the gaming console market is due to their more than one year headstart on the Xbox. By the time Xbox hit the market, the PS2 already had millions of consoles out and a full game library to work from. The push to get the Xbox 360 out so quickly is in response to that headstart that PS2 had the last time around. The Playstation lineup has been Sony's biggest profit generator, so their thinking on Blu-ray could very well be more influenced by the need to preserve that franchise than developing the market for a new HD disc format.