MarineCorps
Explosion!
There is well over a million PS3's sold. HD-DVD on the other hand has not even sold 200,000 players. PS3 is a major factor as far as format goes.
http://www.engadgethd.com/2007/08/09/many-xbox-360-ps3-owners-unaware-of-hd-abilities/
Again. People don't buy game consoles because they can watch movies on them. They buy them to play games on them. Sony sees the writing on the wall. You don't suddenly go from yelling your winning at the top of your lungs to saying your in a stalemate without good reason. And also Blockbuster is offering HD-DVD in 250 of it's stores.