Point is: Why did Betamax, Laserdisc, etc all fail?
Because even though they offer "superior" features, they cost too much and don't deliver enough to warrant purchase to the average consumer.
BluRay costs >=$1,600 to play a single disc. ($1,500 player, cables, a $40 new movie...)
HD-DVD will cost probably $1,000 less. ($500 player, Component cables, a $25-30 new movie)
Now to an average consumer, is "barely better stuff- IF the industry supports ICT flags" worth $1,000? Because without the flags, there's really no visual difference, and there's barely any features difference. The only real up is higher storage meaning fewer boxes will have more than one disc. Whoopie. Totally worth $1,000 right?
Maybe I'm missing something, but this seems like the dumbest gamble in history.
Note also: The better tech format rarely wins. How long did floppy discs survive, despite the rise of infinitely better storage devices? (including just emailing stuff to yourself, which is faster and more reliable even on dialup). How many businesses still use tape storage despite the rise of- well, everything else (I've seen them in action- yes they're still around)? And you know people are still buying VHS en masse. Heck, there's plenty of people who are still getting their television signal from an antenna.
Why? Because it's cheaper. Features? Who cares. Again, I work retail. I still have to explain to people "what's that DVD thing all about" from time to time. And DVD-R? Rocket science. And combo players? It's like you're marketing the Space Shuttle to a third-world nation.
All the bulk of consumers care about is price and availability of titles. Are there lots of bleeding edge tech nuts? Sure. And they have massive pockets that can keep a technology in place for a long time (see also: Laserdisc living on through eBay and trade shows). But they don't have the long-term staying power to keep something tops in the market like Sony is expecting for BluRay.
Which do you think your average Wal-Mart customer will buy?
BluRay version of (popular movie): $42.99
HD-DVD version of (same movie): $34.99
And yes, that's a pretty normal price difference.