Sales of Blu-ray discs in the first quarter nearly doubled those of the same period last year, according to a recent report from Adams Research — 9 million units from January to March vs. 4.8 million in Q1 2008. On top of that, Adams Research also reported that there are now 10.5 million U.S. households with a Blu-ray player — a PlayStation 3 or a set-top model.

Good news, right? Well, sure. 

But look at those two figures again — 9 million Blu-rays for 10.5 million homes. That means that in the first three months of the year, less than one Blu-ray release was bought per household that has a Blu-ray player.

So what’s going on? It’s the PlayStation 3 owners. They represent about 8 million of those U.S. Blu-ray households. Figuring that the 2.5 million or so people who have set-top Blu-ray players bought them specifically to play Blu-ray discs, the PS3 owners clearly aren’t holding up their end of the bargain. They’re mostly just gaming.

So while the Blu-ray Press Office (an industry group created recently to promote media coverage of the format) is trumpeting the positive Q1 news, Blu-ray backers should be more concerned about the latest proof that most people who have a Blu-ray player  – a PlayStation 3 — aren’t actually buying Blu-ray releases.

Netflix’s plan to raise the price of its Blu-ray rentals is simply a reminder that Blu-ray disc prices are still too high.

Yes, Blu-ray prices have been steadily falling in stores, with an average price of $26 a disc so far this year, according to Adams Media Research. But that doesn’t tell the whole story.  Those price drops, from $28.37 in 2006, are due to retailers lowering their prices and squeezing their profit margins. The studios continue to charge retailers the same per release — $21 to $24 each for titles with an MSRP of $35 to $40, according to Video Business. That inflated dealer price, which hasn’t changed since 2006, is the driving force behind Netflix’s move.

I don’t buy the argument that the MSRP doesn’t matter if retailers are continually discounting Blu-ray releases. Those sales are still based on inflated MSRPs. Bop over to Amazon and check out its sale prices for Slumdog Millionaire.  The DVD goes for $17, while the Blu-ray goes for $26. Are a few extras and a high-def picture worth $9 more?

The picture for Blu-ray prices will get better. Adams Media Research estimates that the average price per Blu-ray disc will drop to $18.55 by 2013. That’s still higher than today’s DVD prices, but it’s an improvement. Will anyone care by then?

Just catching up on some recent topics that have been stacking up since I started doing NewsBreak duties. Here are some interesting tidbits from the video-game and home-video world:

Mature DS: I recently wrote about the spate of Mature-rated games that have hit the Wii lately, including MadWorld. But the Nintendo DS is growing up, too. Last week, Rockstar released Grand Theft Auto: Chinatown Wars for the portable system. It’s only the sixth M-rated game to come out for the DS. (A seventh, the first-person shooter C.O.R.E., comes out April 14, after being postponed from December.) GTA: Chinatown Wars has been getting rave reviews, with a Metascore of a whopping 94 (out of 100) at Metacritic. I just started playing last week, too. I’ve been turned off by the cartoonish graphics and humor, and I’m not thrilled with any DS that requires the player to wield the stylus at the same time you use the various buttons. But I have to admit that the game is as addictive as any previous GTA title. As soon as you finish a mission, it’s nearly impossible not to want to go on to the next one immediately, no matter the hour.

Game sales: Video games continue to defy the economic conditions. Sales of hardware, software and accessories were up 10 percent in February and up 11 percent since the beginning of the year, compared with the same time periods a year ago, according to the latest figures from the industry-tracking NPD Group. Interestingly, analyst Anita Frazier said, “Unit sales increased even more than dollar sales did, reflecting a slightly lower average retail price for all categories as compared to last year.” The biggest-selling game was Wii Fit, benefitting surely from New Year’s resolutions and the Wii’s continued dominance (753,000 units sold in February, by far the month’s biggest console). Sony’s PlayStation 3 had the biggest sales increase from January among all systems (276,000 sold) – largely thanks to the exclusive shooter Killzone 2, which ranked No. 5 among all games even though it was available only two days of the month.

Amazing PS3: I missed The Amazing Race last night while I was out for the evening. March Madness pushed 60 Minutes back an hour, which then delayed my show — nullifying the time set on the season pass on my DirecTV DVR. No problem. I’m planning to watch the missed episode tonight. I’ll just go to CBS.com using my PlayStation 3 and stream the TV show directly from the website to my big screen. The Wii and Xbox 360 can’t do that.

Warner DVDs: Interesting news that Warner Home Video has decided to sell thousands of unreleased movies from its vaults as custom DVDs ($20) or instant downloads ($15). I don’t see much for me in the initial batch of 151 movies being offered at the Warner Archive, but I’m intrigued to see what’s coming, especially among the TV shows. I have a feeling that Warner is going to rake in some money on this venture, so expect other studios to follow suit. MGM, for example, has a similarly huge catalog.

High-def classic: Speaking of MGM, my favorite movie, Sergio Leone’s The Good, the Bad and the Ugly, has finally been announced for release on Blu-ray. It’s coming May 12, and , well, I can hardly wait. High-Def Digest has the details, such as they are at this point.

If you’re befuddled by some aspect of setting up a home theater, two new sources have become available to help.

The first is Joshua Zyber’s new HD Advisor column at High-Def Digest. Once a week, he answers reader questions about Blu-ray, high-def and home theater in general. His advice is straight-forward and easy to understand, and readers can jump over to the site’s forum for further discussion.

The second is from Don Lindich, whose syndicated AV column runs in the Star Tribune. He has just posted a detailed guide, with step-by-step photos, on how to set up a home-theater surround system. It’s one of many helpful guides on his Sound Advice website. If you don’t understand something, you can always send him a question, and he might even answer it in his column.

One thing mentioned at both websites that’s worth repeating: Don’t waste your money on overpriced cables. Monoprice is your friend. You’ll be amazed at the low prices it charges for all kinds of cables and adapters needed for your setup. The quality of its products is excellent, shipping charges are reasonable and service is prompt. What more could you want?

Vizio has made a major dent in budget-priced flat-panel TVs, and now it has turned its attention to Blu-ray. At the recent Consumer Electronics Show, the company flaunted its VBR100 Blu-ray player, which is coming out in April at an announced retail price of $199. That means discounters should be selling it in the $150-$175 range.

But the best part is that, unlike other budget Blu-ray players now selling for that price, the VBR100 looks as if it will be fully loaded, including the ability to play Web-enabled content (BD Live, aka Profile 2.0). Other features:

* 1080p output
* Up-conversion for standard DVDs
* Built-in decoding for Dolby TrueHD, DTS-HD Master Audio and multi-channel PCM (plus Dolby Digital, Dolby Digital Plus, DTS)
* 7.1-channel audio output
* Super-slim design

There’s no word yet on how it connects to the Internet, but I’m guessing that it would be a wired connection. As such, wireless capability — as the PlayStation 3 has – would be the only real drawback for this player. But the built-in decoding will make it a great, low-priced option for viewers with older receivers.

Speaking of Blu-ray players, Don Lindich has put together a Blu-ray Player Buying Guide at his Sound Advice blog. It’s a great resource for people looking for all of the inside info before deciding what to buy.Â

The Dark Knight has become the first Blu-ray title to sell 1 million copies in its first week. About 13 percent of the movie’s first week sales of 13.5 million were in the new high-def disc format, according to estimates by Warner Home Video. The studio said it expects worldwide Blu-ray sales of 2 million by the end of the year for The Dark Knight.