I read an article recently, both blu-ray and HD-dvd uses blue lazer. The difference is blue-way writes a thinner layer and would have a higher capacity disc. HD-DVD is backed by more than 15 hollywood producer and blu-ray is only backed by fox(fox is also supporting HD-DVD,too) and sony pictures. This is the same case hardware wise, almost all companies are supporting HD-DVD while Sony and one or two companies are pushing blu-ray.

This is very much like vhs vs beta war with the differences that Sony got Sony Pictures and PS3 to back up the technology