Blu-ray was clearly winning and then HD-DVD basically bought a bunch of exclusivity rights to keep them in the game. Looking back on this 5 years from now it will be Sony’s decision to put the Blu-ray player in every PS3 that caused them to win the format war.
They moved 1.3 million PS3’s just over the holiday season. That’s a lot of people looking for content to play on their shiny new Blu-ray players.