I think you got it backwards. HD-DVD was the first to market. Blu-Ray has been behind.
Latest I've heard was the HD-DVD was winning the public relations war, but with the PS3 shipping with a Blu-ray drive the war was going to be long and drawn out.
Sony engineering is usually pretty good (at the high end), but when will they learn that trying to corner the market with proprietary formats is a recipe for disaster? (see: Beta, ATRAC, Minidisk)
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