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Blu-Ray gained most of its support because it was going to be the format of the PS3 and people expected the PS3 to sell at a similar rate to the PS2 ... With Sony's initial release date of the PS3, and with it being a worldwide release, this meant that there would be 10 Million Blu-Ray playing PS3 systems in people's homes as of January 1st 2007; by January 1st 2008 the format war was supposed to be over because Blu-Ray was supposed to be on its way to being the fastest adopted format in history.

Right now neither HD-DVD or Blu-Ray are selling at a rate which is particularly impressive and they're not selling at a rate which is that much different from eachother. I suspect that Paramount and Dreamworks took advantage of HD-DVD being the lower selling format to negotiate better licencing terms from the HD-DVD group than they could from the Blu-Ray group in exchange for being mostly exclusive.