I think that if Microsoft had added an HD-DVD to the 360 the scene right now would be different. The fact the the 360 price would have been higher, I do think that the sales would be less right now. However, the fact that the 360 had a year head start there would be more HD-DVD players in circulation right now.
Microsoft might have shot themselves in the foot. MS said they were waiting for HD downloads to be the norm. Had MS put the HD-DVD player in the 360 the HD format war might have gone on for years. By MS not doing so and Blu-ray doing so well in terms of sales the war ended earlier then anyone expected. It's not officially over yet but in the words of Marv from Sin City "they are going through the motions anyway". "They" of course being HD-DVD.
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