Recent events have made it abundantly clear, HD-DVD is loosing (even with the exclusive support of paramount). I think that ms never intended for hd-dvd to win (even though that was their best case scenario). They just wanted to delay the victory of bluray, so people will wait to buy the ps3. That is why they added the hd-dvd add on instead of an internal drive and why they still support toshiba even though bluray is gaining better market shares.
MS know their console doesn't have BR and ps3 does. If they suppor br, people will buy ps3 because it is a cheap bluray player (like ps2 and dvd). They supported hd-dvd because they don't want BR todominate during the 360s lifespan.
the preceeding was my opinion.
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