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AnthonyW86 said:
I never got why Sony invested so much in Blu-Ray to begin with. Back in the day it was already clear that things were moving to digital only, and dual-layer dvd's provided enough space at the time. They could have just let HD-DVD do it's thing, that would have saved them a lot of trouble. In the end it even made the ps3 more expensive and caused production delay.

It is hardly clear that abandoning Blu-Ray to allow Toshiba to win would have been better for Sony (or HD movies) in the end.

The actual trajectory of cost/price decreases (and lesser adoption rate) is not an inherent result of the format switch,
problems with blue laser supply were not really a huge technogical problem, but just a market supply inefficiency,
the result in pricing was mostly a profit-taking response by a consumer electronics industry with over-all profitability problems,
when Chinese (and Korean) brands were starting to eat established OEMs alive, also getting BR royalties was a plus for Sony.

Blu-Ray's larger capacity was and is also crucial to console gaming which is central to Sony's interests.
(both in total size, and it's higher speed can better augment read bandwith even for HD installed games)