To all those talking about expensive media, how no one is interested in HD anyway, etc....you guys need to come out from under your rock. This IS the next-gen format, with billions at stake. There's a reason these major studios were slugging it out for this.
Prices will come down, people will adopt, $ will be made.
I wouldn't be so sure. The leap from DVD to BluRay or HD DVD is not
nearly as dramatic as that from VHS to DVD. People are very happy with the DVD, and the picture quality, even on 1080p TVs is very good. Of course the studios are going to release content for the new format and try to encourage people to adopt it. It means loads and loads of repeat sales. How many movies do you own on DVD that you already purchased once before on VHS? Studios get to sell you the same product twice when you decide to move to a new format, but still want to own your favorite movies, or maybe want to experience them in higher quality.
However, as I said, the jump from DVD to HD media is not nearly so dramatic. DVD is already digital, ditches rewinding, has interactive menus, lets you jump to any chapter, digital surround sound, and it represented a HUGE, VERY NOTICEABLE picture quality improvement, immediately obvious to a casual observer. The HD formats have really only given us a better picture, and the average consumer was not dissatisfied with the one they were already getting from their DVD players.
If you ask me, BluRay will win in a two-way battle against HD DVD, but in a three-way battle, DVD will never be defeated by either format. At best we will probably get discs that will play in both DVD and BluRay players. The technology that truly succeeds DVD will probably not be physical media at all, but rather digital delivery/storage.
BluRay will be moderately successful, but we're not going to see DVD disappear in the next ten years, and you can only imagine what we will have in terms of internet pipelines, media centers, streaming media, movies-on-demand services from the likes of Blockbuster/Netflix ten years from now.