LG did unveil a hybrid HD DVD/Blu-ray player the BH100 at CES this week. However, BetaNews reports the device suffers from a major flaw that may prevent it from being commercialized in its current state:

The problem stems from the lack of support for HDi, the advanced interactivity technology used by HD DVD. LG has only included support for BD-J, Blu-ray's interactive menu system, in the BH100. Without HDi, only the video content from HD DVD discs will play back; menu systems and other interactive features will simply not be usable.

Kevin Collins, Microsoft's representative for the HD DVD group who sits on all the steering committees, says LG will not be able to sell the product and claim it supports the format if it leaves out HDi. Collins said LG provided no advance notice before announcing the BH100 player at CES, and noted he was surprised by the move.

In fact, Collins explained to BetaNews that the DVD Forum could pursue legal action against LG for claiming the hybrid player supports the HD DVD and using the HD DVD logo, just like it does against pirate hardware manufacturers in Asia that build DVD players without paying licensing fees.

LG plans to begin selling the BH100 in the first quarter of this year for $1,199 USD. But objections from Microsoft's Collins and other companies involved in HD DVD could force LG to make changes, or scrap the player altogether. Collins noted that studios would be "very upset" if consumers could not playback HD DVD movies as they were intended, with interactive menus and special features.