Panasonic said Tuesday that it had introduced the first Blu-ray player to be based on the Final Standard Profile, which adds new functionality that so far has been missing from Sony's format.

For example, picture-in-picture will be available for the first time in Blu-ray; previously it was only offered by HD DVD players and is useful for displaying special feature content alongside a movie. Additionally, other features which made the interactivity superior in HD DVD are now making it onto Blu-ray.

Unfortunately, older players from Panasonic and other Blu-ray manufacturers may not be upgradable to the new standard due to changing hardware requirements, leaving early adopters without full functionality. Only the PlayStation 3 will be upgradeable to Profile 1.1. However, Profile 1.1 does not mandate an Ethernet connection for downloading extra content, which will come in Profile 2.0.

The problem with differing standards is that movie studios won't know what capabilities Blu-ray owners will support. With HD DVD, which required 128MB of storage, dual video and audio decoders, and an Internet connection from the start, studios can rely on the features for special content. With Blu-ray, studios need to consider many users have older players that can't -- and never will -- support advanced functionality.

Other features of the DMP-BD30 include Deep Color Compatibility, HDMI 1.3B, 1080/24p playback, and an SD Card slot to allow the use of media from devices that support that format. In addition, an ethernet port will allow for the downloading of additional content.

"The DMP-BD30 will contribute greatly to Blu-ray's mounting lead over HD DVD," Panasonic Entertainment Group chief Gene Kelsey said in a statement. "Panasonic's adoption of the Final Standard Profile adds a whole new dimension to the entertainment experience."

Still an issue for the player will be its price: $499 USD. While significantly cheaper than Panasonic's other attempts at a Blu-ray player for the masses, it still comes in far above the $200 level analysts have repeatedly stressed as necessary for the format to take off. So far, no Blu-ray player has come within $200 of that so-called magic price point.

A release date for the Panasonic DMP-BD30 was not announced.