This year was always going to be one of technological warfare. Well now it looks as one of those battles have taken a new twist. We already told you how the first pirated HD-DVD hit the net. Now it seems just as the heads at Sony felt victory was in their grasp hackers have, well hacked their precious Blu-Ray.

Apparently the AACS encryption coding and DRM barrier has been cracked just as it was with HD-DVD, although the Blu-Ray's BD+ copy protection is still standing tall.

Although progress has been made by the hackers dodgy street traders won't be celebrating just yet. But it doesn't look good.

The format has endured a mixed bag of praise and criticism since its inception. Praised for its storage capacities and high quality picture it is currently supported by the major Hollywood studios in what was seen as a major coup for Sony. But there have been difficulties with the technology.

It was the inclusion of Blu-Ray as a standard feature for the Playstation 3 that caused it to be delayed from release in Europe till March this year. It was originally intended for a November release. Last year!

It was also thought that backing from the adult entertainment industry given to HD-DVD could do to Blu-Ray what VHS did to Betamax when Sony again refused the studios to use their format for porn.

With both HD-DVD and Blu-Ray being cracked the two formats look to be on a more even playing field.

Anyway more here on Engadget.