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This is from an Associated Press article I just read through the NYTimes:
http://www.nytimes.com/aponline/technology/AP-Dueling-DVD-Formats.html


"Blu-ray discs can hold more data -- 50 gigabytes compared with HD DVD's 30 GB -- but the technology requires new manufacturing techniques and factories, boosting initial costs.

HD DVDs, on the other hand, are essentially DVDs on steroids, meaning movie studios can turn to existing assembly lines to produce them in mass."

If that is true, it looks to be an added benefit of long-term cost reduction if HD DVD wins out. Less infrastructure and R+D costs to refine the disc replication process.