The company's website describes the VMD platform as "meant for 1920X1080i/p High Definition up to 40 Mbps bit rate playback using its 20 GB-40 GB Red Laser optical discs."
NME says VMD is superior to Blu-ray in a number of ways, including lower manufacturing costs for both discs and drives. Of course HD DVD also had a lower manufacturing cost than Blu-ray, yet Sony's manufacturing subsidies effectively made it a non-factor in studio decisions. How long they can or will continue the subsidies has yet to be seen.
Critics would point out a number of issues with VMD, most notably the lack of major (U.S.) studio deals. Audiophile won't be impressed with no mandatory support for High Resolution Audio either. The company is working on both of these things, as well as implementation of AACS and region coding.
Assuming VMD is able to be developed into a competitor, technologically, for Blu-ray, the real question may be whether the public is willing to invest in another format war. HD DVD lost the last one after starting with a lead in a number of ways.
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