Lately there has been a lot of buzz about how Blu-ray has won, HD-DVD is dead, etc. I think the reality is, the battle is far from over. I think it's a three way race, not just blu-ray vs HD-DVD.
The two sides approach are different. Sony's approach with Blu-ray is to completely replace the current DVD. Because the current DVDs, you pay royalties to Toshiba. If Blu-ray completely replace DVD, then you pay Sony.
On the other hand, Toshiba position HD-DVD as an enhancement to DVD. Because you pay them either way. So they aren't quite as pushy to make you drop DVD in favor of the more expensive HD-DVD. It's also why hybrid disks exist. You can buy a disk that's both DVD and HD-DVD, and it plays in both DVD players and HD-DVD players.
A reminder to anyone who thinks the battle for the DVD successor is over as Sony claims. The combined total sales of HD-DVD and Blu-ray TOGETHER accounts for less than 1% of the DVD sales. So frankly, it's too early to tell.
Not to mention, I think there is a 3rd format that people are ignoring except Apple and Microsoft. It's digital distribution. You can already buy standard resolution movies from iTunes store, and rent 720p movies on Xbox Live Marketplace. I wouldn't be at all surprised if the Blu-ray/HD-DVD goes the way of SACD. What's SACD? It was a formate designed to be the successor to CD. No one uses it. People buy CD, or download music online, legal or otherwise. I wouldn't be at all surprised if in five years, only quality videophiles/audiophiles such as myself even know what HD-DVD or Blu-ray is.
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