"We know that Blu-ray has garnered massive content support from the studios with about 80% of all of Hollywood's content locked up. But, Sony is not stopping there, it's well known that the Play Station 3 will be blessed with a Blu-ray drive. Analysts over at Fuji have looked deep into their crystal ball and are betting that even if we start out with two formats, that the PS3 will cause Blu-ray to win out by 2010!

Sony’s decision to support the Blu-ray format in their Playstation 3 console is expected to drive sales of Blu-ray discs, as current Blu-ray disc players are considerably more expensive than the PS3’s estimated cost of US $300 - $400, with price tags in excess of US $2000.

By contrast, support for the HD DVD format is expected to come from the computer manufacturing industry, with Fuji Economics predicting that HD DVD drives will be included in some desktop and notebook computers from 2006 onwards.

Adoption of the next-generation DVD formats among consumers, however, is expected to be a slow process. Consumers accustomed to the current generation DVD format will most likely begin the switch to Blu-ray or HD DVD in 2008, with sales of 8 million Blu-ray disc and HD DVD players predicted by 2010.

Of the 8 million players sold, Blu-ray is expected to gain market share of 4.5 million units, which would translate to revenue of approximately ¥119 billion [USD $993.5 million]. The 3.5 million HD DVD units expected to sell, on the other hand, would result in only ¥82 billion [US $684.5 million] in revenue." [more]