Well, to play devil's advocate - the whole point he was trying to make is that Microsoft is keeping HD-DVD viable SPECIFICALLY to kill both formats.
The simple fact is that is impossible for HD-DVD to actually 'WIN' the battle, and it's commonly known throughout the industry. What Toshiba is trying to do is keep HD-DVD viable long enough to force both standards to take, and create a situation where both are simply encompassed in dual format players eventually - similar to the DVD-R and DVD+R wars.
Don't get me wrong, Blu-Ray is not winning this war due to any sort of real or perceived format superiority. It's actually quite the opposite. Sony has completely botched the launch of blu-ray, and if the war were to be determined by sales of standalone players, HD-DVD would have already won in a landslide.
The simple fact is that despite Sony being third in the console race, the PS3 is always going to give blu-ray an insurmountable lead in the format wars. Regardless of how people get them in their homes, if someone has an HD disc player, the vast majority will not buy a different format - especially at the prices that they are now. As the installed userbase of the PS3 grows, the lead in disc sales will continue to skew more and more towards blu-ray. The simple fact is that if Toshiba had not paid an exhorbitant amount of money for temporary exclusivity from Paramount and Dreamworks, the format war would have been over by this Christmas.
The hundreds of millions that Toshiba and Microsoft have poured into the format with the exclusivity deals combined with the recent dumping of $99 players at a huge loss have forestalled that temporarily. The trick for toshiba is to continue for as long as possible until it comes to the point where we actually see whether Michael Bay is right, and both formats lose, or if both formats combine.

You're confusing "fact" with alot of guessing and speculating ..not much different then the crap Michael Bay is spewing. At least he, being a Movie producer/Director, has some actual influence and insider info on the matter. What have you got besides a bunch of assumptions?