Both formats have an uphill battle to fight. Standard DVDs outsold Blu-Ray by a substantial margin as well.
"High-def player sales still just 10% of standard DVD
. . .
HD DVD commanded the lionís share of unit sales for stand-alone high-def disc players, scoring a 62% unit share; Blu-ray held 37%."
So far, Blu-Ray & HD-DVD sales have been to "early adopters" The general public (mass market) have yet to speak.
"The demographics of the next wave of high-def adopters, who are considered more price-conscious than the earlier adopters, might work to sway the format war in HD DVDís favor, according to research firm The Diffusion Group." http://www.videobusiness.com/article/CA6511468.html