Blu-ray sales have been increasing as player prices have dropped. As we’ve seen there have been several recent sales and promotions which have brought full-featured BD-Live players from first-tier brands into the $200 price range, which is a key price point. And prices are widely expected to drop further going into the holiday season, especially with Black Friday specials. And prices are expected to drop even more in 2009 as Chinese manufacturers enter the market. The trouble with the economy is also driving prices down as vendors drop them to encourage sales in a depressed market.

Via CE Pro.

With video downloads it is always a compromise between speed and quality. For instant gratification you have streaming video, but that’s the lowest quality. Broadband speed limitations restrict the maximum possible streaming bitrates. Downloads can offer higher bitrates, but still require fat pipes to be feasible, and, of course, storage. But even the best download services don’t come close to matching the picture quality of Blu-ray, because they can’t match the bitrates. And don’t even get into bonus features, lossless audio (Dolby TrueHD or DTS HD-MA), multiple audio and subtitle tracks, etc. With most commercial Blu-ray titles using between 30GB or more of disc capacity, we’re not going to be downloading content at that quality in the near future.

So I was a little gratified to see this article in CE Pro, entitled Blu-ray and Downloads: Why Both Are Worth Offering. CE Pro is an industry magazine with a primary audience of consumer electronics professionals, the kind of folks who install custom systems in high end homes. The article focuses on Blu-ray for physical media and VUDU for downloads, but Amazon Unbox on TiVo, iTunes on Apple TV, Xbox 360, PlayStation3, NetFlix, etc, are all possible broadband video options for the consumer. Downloads aren’t about to replace discs for those who prefer a quality viewing experience, but downloads offer the kind of instant gratification that discs can’t match. I think having both available is the best approach, the best of both worlds.

New Line has not only announced that they’re going Blu-ray exclusive, but it is effective immediately. All of their announced future HD DVD releases have been canceled. And their sole existing HD DVD release, Pan’s Labyrinth, will cease manufacturing and once existing stocks are depleted it will no longer be available. Via High-Def Digest.

Digital Playground, an adult film studio which only recently went neutral from being HD DVD exclusive has decided to fully back Blu-ray along with HD DVD on all of their high-def releases“until there is a clear-cut winner” according to a statement made before Warner’s announcement. One has to wonder if, in light of the announcement, they might consider Blu-ray a ‘clear-cut winner’ at this point. CE Pro via EngadgetHD.

And the Times Online out of the UK is reporting that as many as 20 of the studios that are part of the HD DVD Promotion group are looking to have their names removed from the roll.

Pony Canyon, a major Japanese music, animation and film studio and part of the giant Fuji Television media empire, said that although it was currently part of the HD-DVD Promotion Group, the decisions of US studios meant it would “choose Blu-Ray in the end”.

Several other Japanese firms – including content producers and electronics component makers – said that their support of HD DVD was “under review” and that they knew of many others in the same position. Others, who admitted that they had previously been waiting for “clear market momentum”, said that it had now probably arrived.

I think we’ll be seeing more HD DVD studios going neutral, as well as out-right defections by both HD DVD and neutral studios to the Blu camp now, especially if Paramount returns to being neutral – definitely if they go fully Blu. At this point any party who really wants to end the war should throw their weight behind Blu-ray. If studios, retailers, rental chains, etc, shunned HD DVD it would be hastened to its end. Times Online via AnimeOnDVD.

While this is happening, Microsoft seems to be hedging their bets with respect to the Xbox 360. They seem to be softening a bit toward the idea of the Xbox 360 supporting Blu-ray via an add-on drive:

“It should be consumer choice; and if that’s the way they vote, that’s something we’ll have to consider,” Albert Penello, group marketing manager for Xbox hardware, said when asked whether Microsoft would support a Blu-ray DVD accessory in the event that HD DVD failed.

I think they’re setting the stage to hedge their bets in case HD DVD does fail, as is looking likely. They can soften their stance, and then they won’t look as bad if they start supporting Blu-ray. From CNET News.com.