Presumably the description of it as a DVD refers to the laser's wavelength, which could certainly make players less expensive to manufacture than Blu-ray. But that doesn't necessarily mean disc production costs, perhaps Blu-ray's biggest weakness, would be any better.
Let's say, for the sake of argument, this new technology would be cheaper to implement than Blu-ray. The studios and consumer electronics manufacturers have already decided on Blu-ray. Regardless of the technical merits of a new format it would still need hardware and content. We already have VMD as a cheaper alternative to Blu-ray and so far it looks like a nonstarter.
Since it also seems they can't use the technique with Blu-ray discs it's not entirely clear what the application of this technology would be. Of course if Blu-ray fails that could change things drastically, but for now it doesn't seem like earth shattering news.
If you're interested in finding out more, and happen to read Japanese, you can find the full text on the university's website.