Keep in mind that Blu-Ray costs more because it requires a whole new manufacturing process for the discs as well as the players. That was a huge selling point to manufacturers of HD-DVD. The players and discs could be made with minimal changes to an existing DVD (player and disc) manufacturing plant. The downside to the less expensive switch for the makers of HD-DVD was the limitation on storage capacity of the discs.
Ultimately, I don't care who "wins" as long as it works for the consumers. I like the approach that the HD-DVD camp took in trying to keep costs down for both manufacturing, and in turn for the consumers (at least initially), so I have a slight desire to see them "win". But it sure would be nice to have the even higher capacity of Blu-Ray. Plus Blu-Ray sounds cooler than HD-DVD.
I am skeptical of the PS3 deal. I know that Microsoft lost money on the XBox just to get them in to homes (the real money was in software licensing of the games), and I don't doubt that Sony will take a similar approach, but at some point, the loss ratio will be too great, and at well over $500 per PS3 (according to the other post here) which doesn't seem to account for the actual cost of the non-Blu-Ray components that make up the PS3, it may be difficult for Sony to make the sub-$400 number.
Just my thoughts.
