I think blu-ray is going to win. It has the capabilities to expand with the market. Blu-ray has the abillity to add more layers to a disk. HD-DVD only can have 3 layers max. High Def movies are just going to get bigger and bigger in size as TV continue to support Higher resolutions. Me personally if I had to choose between 2 players and one has alot more potential to last longer, I would go with that. You cant go with MS just cuz they have more money. DVD formate really took off with the PS2 launch. Before that, not many people had DVD players. That was accually my first DVD player I ever owned. PS3 is going to blow M$ out of the water with console sells once the PS3 comes out and them backing HDDVD will account for nothing with there is double the ps3 systems out there then 360s.
On another note, this isnt the same as the VHS/Beta wars. The reason VHS won out was because BETA would not let the adult indestry use there formate. They will not make the same mistake this time. And to all those who are saying that 100 gigs is too much. NOT ALL BLU-RAY DISK MADE ARE GOING TO BE 100GIG disks. Just like with DVD's, they can choose how many layers they want. Also remember that perticually gaming, you need alot of space as grafics get better. Remember with PS1 where 800megs was enough space for a good game. Now its nothing. And that was only like 10 years ago. As for only supporting digital, even local TV networks are due to switch completely over to digital here in the comming years. Im sure they will make a converter to conver DMI/HDMI to coposite HD signals.