WB's statement may also have been a scare tactic aimed at BDA. Maybe they want BDA to drop players to rock bottom prices this holiday season, so the studios won't have to drop their movie prices.
I honestly think that the studios would drop the prices of movies as the last straw to keeping BDA afloat. If that didn't work, then I can see the studios dropping the format
Honestly though, Blu-ray, IMO, is doing rather well considering the economy. Presently, alot of retailers, online and B&M, have felt decreased in sales. My barber in my area even mentioned his business has slowed. We all know the status of the 3 auto makers. Circuit City going bust and Best Buy has even had some drops in sales. Considering all these signs, Blu-ray seems to be holding it's own, and even seems to be still growing, however small it is now. My point here is that the studios are seeing this growth in Blu-ray, although not to their expectations at this point, nevertheless growth.
I think the CEMs are doing their job by reducing the players, especially during these economic times. I also feel the B&M stores are doing a pretty good job by giving BD a dedicated area of their own. This helps promote the new format. Online companies have had some good deals with blu-ray as well, especially Amazon.
Now, the last and biggest missing piece of this puzzle is the studios. They need to drop the movie prices down within a few dollars of the DVD version. I know alot of people have been saying this, and so have I. IMHO, in order for blu-ray to excel, the studios MUST reduce their prices. I think they will in time, but I believe they need to do that now. This is a different situation then DVD, so IMO they can't wait years to do this.
OK, I'll end my opinion.
Oh yeah, if BDA were to belly-up, no problem, there's always a bailout from the government option.