I've been avidly following the developments of the format war and HD-DVD is currently kicking Blu-ray's ass in almost every aspect: pricing, picture quality, and content. HD DVD players and discs are outselling Blu-ray players and discs by a huge margin, it's been getting difficult to find the players in stock since they're almost always sold out. The number of people returning their Blu-ray players has gotten so bad that retailer Best Buy has cut in half their usual 30 day return period to only 15 days (plus they charge you a 15% re-stocking fee) just for the Blu-ray player.
Here's an article from ProjectorCentral that pretty much sums things up.
Hi folks,
Many of you are closely watching developments in the face-off between HD-DVD and Blu-ray, the two competing high definition formats representing the future of disc-based digital video storage and playback. We have been experimenting with both formats since they were released, and have formulated some initial impressions, as follows:
HD-DVD as a format is performing beautifully. ProjectorCentral enthusiastically endorses HD-DVD for anyone who wants to experience a major step forward in video quality for a nominal cost. The Toshiba HD-A1 player is slower to load that anyone would like, and the non-backlit remote is difficult to get used to. But the picture is worth suffering through these quirks. HD-DVD represents a dramatic improvement in picture quality, and for $500 there is simply nothing else like it.
Blu-ray is, as of this moment, not as impressive. It delivers a noticeable improvement in image quality over standard DVD, but the difference is not as dramatic as HD-DVD. We believe that this is a short term problem related to the fact that Blu-ray discs are not yet being manufactured in their dual-layer, 50 GB configuration. With only one layer available, the maximum capacity of a Blu-ray disc is 25 GB, compared to 30 GB on the HD-DVD. Furthermore, the Blu-ray discs that have been release thus far are in MPEG-2, which is an old and inefficient video codec. The combined limitations of MPEG-2 and 25 GB of storage translate into a less than ideal image on the screen. HD-DVD's current storage capacity of 30 GB plus the use of the more efficient VC-1 codec produces a much more dramatic HD image. So we have the odd spectacle of the $500 HD-DVD player actually outperforming the $1000 Blu-ray player.
We believe Blu-ray's defects will be resolved and that eventually the image quality of Blu-ray will match that of HD-DVD. However, there is no reason to expect that Blu-ray will ever exceed the quality of HD-DVD. Contrary to widespread rumor, both formats will contain transfers of films in 1080p/24 resolution. As noted in an earlier article, the actual transmission of the signal in 1080i vs. 1080p is not going to produce any visible differences in image quality to the vast majority of users.