There is nothing they can do now. No-one is going to jump from the bluray camp now that warner has switched.
It's over people. Sony pictures and affiliates alone had about half of the desirable library of movies, add in Disney and Warner and Paramount and that only leaves Universal really. (as far as the mainstream audience is concerned anyway).
I'm really pissed as I thought that HD-DVD was on the cusp of winning. Inexpensive players, and no region coding, which might not mean much to the US, but to the rest of the world is a real plus. Also the BR players are s-l-o-w and the damn spec isn't even finalised, which means the BR player you buy today, might not play the discs released next year.
*sigh* I really hoped HD-DVD would win, but I guess at least this will mean it is over and there will be one format by christmas. then hopefully prices will drop as more manufacturers move in, safe in the knowledge that they aren't wasting their R&D.
Still I'm happy with the HD-DVD library I have, including the matrix, bladerunner, transformers, serenity, the HP movies, fear and loathing and big lebowski, 2001 etc. hopefully will pick up some titles cheap if they have a clear-out. It's not like you can't still watch the movies you have...
but i do think it is bad news for microsoft, f bluray becomes realy popular, the next round of console buyers may wel be swayed by the PS3, sony has a far better track record of making their consoles smaller and cheaper as time goes on. It could end up cheaper or the same price as the 360, and if sony's game library picks up also in the next 12 months, the 360 could start looking a little expensive.
I know I would prefer a system that could play my HD movies as well, (and not the far too heavily download movies). at the moment the PS3 doesn't have the games though.