Originally Posted by bruceames

Paramount didn't think so. They felt Blu-ray as a format was too expensive to use compared to HD DVD. Having a major studio replicate on a new format for over a year and then ditch it due to cost and performance (like not being ready for prime time) issues leaves a black mark on the format and informed consumers will wonder 'who's next?' (which studio is going to abandon Blu-ray next?). Therefore, Blu-ray has become the riskier of the formats and its future is more uncertain.

On the other hand, HD DVD has been ready from day 1 and there players are far less expensive. The A2, for example, can be found for under $200 now. It's too bad Blu-ray is going to arrive late to the 'party' and will end up being the third wheel, relegated to niche status, while DVD and HD DVD being the dominate formats, with HD DVD slowly taking over for DVD.

Twin format disc, with DVD and HD DVD on the same side, will be a big hit with consumers and will allow a smooth transition between old format and new. Blu-ray does not offer this flexibility.

In the end, all the studios will use HD DVD because they will have the dominate ST player base and Blu-ray exclusive studio will no longer be able to ignore this as they grow over 2 million strong (probably by the end of next year)