With the next-gen video format war being based almost completely on exclusive titles, neither side can afford to lose them. However, Blu-ray's vigilant region encoding may potentially put the high definition medium at a disadvantage to Toshiba's competing HD-DVD format.
HD-DVD discs and players are region free, meaning that any disc will work on any player, regardless of where the disc was made. One of Blu-ray's security features (one that most studios prefer) is that is region encodes its discs. While making it's content more secure, this could turn out to be a snag to overcome.