Time will tell how well Blu-ray Disc read the tea leaves.
In a report from research company Forrester, it appears that Blu-ray Disc could possibly squander their sales advantage if they don't alter their current course of action.
Here is a an excerpt from that report that was posted on their site:
"Forrester predicted in 2005 that Blu-ray would eventually win a hard-fought victory over HD-DVD in the next-generation DVD format war. Today, Forrester believes that Blu-ray remains in a better position than HD-DVD - but that Blu-ray strategists need to alter course. Blu-ray's failure to land a knock-out blow means that the format war will continue for at least 18 more months. Blu-ray's content advantages are somewhat diminished since the recent decision by Paramount to commit exclusively to HD-DVD. And HD-DVD hardware prices have dropped directly into consumers' preferred price range, according to Forrester's Technographics survey data. Weakened by these developments, Blu-ray needs to offer a viable hardware model at the $250 price point by Christmas 2007. The Blu-ray camp must also stave off further studio defections, and employ more aggressive promotional tactics to counter HD-DVD's recent momentum. Failure to alter strategy would open up Blu-ray to a possible upset defeat at the hands of HD-DVD."