The President of Matsushita, Kunio Nakamura said that it is now up to Toshiba to yield its position in talks on a unified next gen DVD format making it clear neither Matsushita nor their partner Sony will budge. This is just the latest of many signs that talks between the two have hit some problems. Both sides decided to engage in talks earlier this year to attempt to avoid a format war that would cost each side millions of dollars and would discourage consumers from choosing to move to next generation discs.
Blu-ray has one major advantage over HD-DVD; it can hold 50GB which is about 20GB more than HD-DVD. However, firms backing HD-DVD claim that it would cost a lot less to the industry to adopt it because it is very close to the structure of current available discs. Both formats utilize the use of blue lasers, which have much shorter wavelengths than red lasers allowing discs to store data at the higher densities.
Source:
Reuters

I would like to see BluRay win out as well. 100GB on a single, 4-layer disc is nothing to sneeze at!
The key 'advantage' of HD-DVD that Toshiba keeps yakking about is aimed only toward the manufacturers, not to you and I. So what if HD-DVD is cheaper to produce? We're still going to pay plenty for the new hi-density discs when they come out regardless of format.
And anyway, if we continually held on/clung to older formats forever, we'd still be burning mpeg-1 










