I'm a bit suprised at the news myself as:
1) As far as the new format goes, blu-ray is kicking the crap out of HD-DVD. Selling 2-1over the first 6 months of this year.
2) Sure, cheaper HD-DVD players are coming out, but honestly, even if they were $199, there is no way that someone (in the masses) picks one up in place of a $39 regular DVD player that may even have upconversion! AtBest Buy, where they sell most the HDTVs their sales staff push regular DVD players that upconvert. Hey, it's an easier sale, so why wouldn't they!
3) PS3's sell whether a person want's to watch blu-ray movies or not. The odds that at some point a PS3 user will say, what the heck and buy some blu-ray dvds for it (or in my case, I buy new movies coming out in blu-ray but have kept my old dvd library) is pretty high. Thus the user base for blu-ray increases daily! For HD-DVD, you have to go out and buy the 360 add on, or buy a separate player. Either of which could be a complete waste should HD-DVD fail. As far as the PS3, sure you are paying for blu-ray, and if it fails it too is wasted, but it's easier to say, I have a PS3 for playing games (and I got screwed on the blu-ray thing) than it is to say, my HD-DVD add on or HD-DVD player is a waste and is now a door stop!
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