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Well this is another VHS Vs Betamax, but this time Sony have the stronger position with Blu Ray as they have backing for more content providers, after all they own some of the major studios.
At the moment HD players are slightly cheaper, BUT one of the best ways to get a Blu Ray player is in a Playstation 3.
Remember when the PS2 came out, alot of people bought them as they where a cheaper way of getting a DVD player.
So we'll have to see.
There are already designs for players that play both formats.
Not sure if the pic above will work and I realize this post stated in Sept but it seems that Warner is going to be switching to Blu-Ray only, they used to support both formats.
If this does happen it seems likely that Blu Ray will be the only format by some time next year. I've already bought a PS3 as they are cheaper than a Blu-Ray player alone.