The format war now has shaped up a bit since it began a couple of years back, yet many of the key issues remain the same.
1. Audio & Video quality is almost identical between formats. Blu-ray has more space and higher bandwidth, so it can technically look/sound a bit better, but this has resulted in VERY minor advantages in actual review scores. For all intents and purposes the movies themselves look/sound identical.
2. HD DVD is competing on price, price, and price. They have done an excellent job with this! But, this may have also cost them a great deal of CE manufacturer support. Right now, there is no other stand alone HD DVD only player on the market that isn't made by Toshiba. For anyone that talks about the 'monopoly' company in HD, think very long and hard about whether it comes from the Blu-ray side, or the HD DVD side.
3. Extras - Right now, HD DVD offers more next generation versatility with extra features. It is POSSIBLE for Blu-ray to deliver some of this, but the required Blu-ray Jave tools are simply not in place to make this easy for studios to do yet. At some point, it will be just a few mouse clicks to add a ton of Java functionality to Blu-ray titles and even more can be accomplished, but right now? HD DVD has the advantage.
4. Blu-ray has, and still does, have the support of far more of the CE industry. If Sony isn't your ticket, then Sharp, Philips, Samsung, Pioneer, and Panasonic all have players out there. Want more? Denon is coming along!
5. If Sony is your ticket, then the PS3 is astounding. Unlike the PS2 was with DVDs, the PS3 is delivering in spades for quality, performance, and reliability. It includes DVD upconverting that has been tested to rival that of some of the best DVD players on the market, and has a failure rate that matches world CE standards (about 3%). So, for the money, you get something that plays discs back, is fast, has great performance, and is likely to meet the standards requirement for Blu-ray 2.0. A very smart decision, especially if you like the occassional video game!
6. Studio support: Knock it about any way you like, but the majority of major studio support still holds an edge for Blu-ray. It has shrunk since the Paramount move (?$?$), but it still is solidly in favor of Blu-ray at this time.
Key words: At this time
If you are hesitant about the formats and value your money then it is going to be a judgement call into this holiday season. HD DVD will deliver the HD-A2 for just over $200.00. Blu-ray will deliver players for a bit over $400.00 and there are rumors of a $399 PS3 in time for the holidays.
I'm not at all sure that this holiday season is going to solve anything relating to a format war, and only some actions by some studios and the continued decline in pricing by CE manufacturers into 2008 is likely to give us some more direction. I think WB is likely to remain neutral for a bit, but Disney, Fox, and Universal could change their format preferences (to neutral or exclusve for the other side) at some point next year.