Anyone still think Blu-ray is going to make it?

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I have always thought movies would go the way of music although I have repeatedly heard that it is not likely due to file size constraints.  But the figures in this article have to be a mjor blow to any chance Blu-ray had:

http://tech.yahoo.com/blogs/null/123584

I'll say it again, Blu-ray will never have a chance to gain any real market share before everything is digital, just like music.  Why Sony would canabalize their Playstation brand for an obvious failure is still beyond me.