While the two rival formats duke it out for the next 5-10 years, downloadable media will take over sales and render the format war insignificant. Microsoft, while supporting HD DVD, seems more interested in pursuing non-packaged media.
In comparison, a hard disc is a much safer option, has quicker access, and allows storage of a library of movies on one drive. And, with legal licensing, if your movie file goes corrupt there may be a way to download a new one free of charge.
And what about the USB stick. It won’t be long before one of those will be able to hold a high definition movie. Pop the USB stick in your HDTV and you’ve got an alternative to the hard-to-handle, overly sensitive coasters we’ve been buying for way to long.
There won’t be a winner in the high def format war, just a co-existence. And while the two formats throw shots at each other, the confusion for the consumer will remain.