Ok, I have a few things to say on this.

1. Recession. (if that's what we are gonna call the 2nd great depression)
2. Competiton (prices are up an average of 5-10$/disc now) I know, I buy blurays... I could get them for 25$ new release. Now their 35$.
3. There hasnt been too much new stuff released, to spurr... added market growth.

Now, just to say something interesting.

My mother-in-law is a AVID DVD collector. Like as in, she has in the hundreds... probibally thousands of DVDs. (who needs a blockbuster, when your mother-in-law has the same selection almost)

I have a 1080p projector. I project a ~140inch screen. I have a 5.1 600watt sony sound system.

Personally, I would rather watch a movie at my house... than at the theater. Alot of the time, theaters are out of focus.

Now how this plays a role in this thread. My mother-in-law LOVES my 'theater'. Infact, she watches almost  every blu-ray I get on it. If my system wasnt that much 'better' Why would she go out of her way, to my house, to watch it? It's not BluRay isnt being adopted, and worked in. It's more like. The people who can afford it, have it. And the people who cant. Dont. And the people who dont care about having a 1994 RCA 27inch CRT... That's fine, dont upgrade, I'm not telling you to surpass the movie theaters. But I assure you. My ~7000$ theater, will rival any theater, except IMAX. That is, Picture Size, Picture Detail, and Audio.

And just as a side remark. GTA4 kicks ass hardcore on the system. 

 If you can afford a BMW 5 series, you can afford a Lotus Exige S, and if you can afford that, you can race right next to the ferrari. Bad example there.

 Your example made me think "I can buy a RCA flat screen TV for 800$ and does that mean it sucks because the 1600$ same size/resolution Sony makes the RCA not good enough?" I would disagree. I would buy the Samsung for 1000$, which is just as good as the Sony, for a fraction more.

Also, if you wanna compare a BMW to a Ferrari, compare a Z4. ;) 

And was that the case in America???? What about Europe??? The Japanese market as its showing already is not the prime source of the videogame industry, neither is Japan the source of the Blu-Ray market as they are showing by the poor sales of the PS3. America and Europe have taken the title of biggest videogame market and I don't expect neither market to adopt PS3 as their Blu-Ray option of choice just like they didn't took PS2 as their DVD of choice.

That's what happened with my family. Even my sisters chipped in.

It probaly happens more often then you think.

Blue-ray players have increased in price since the war ended. It'd say, that's gotta have an impact in sales.

how funny is this after reading all of those articles about analysts saying no one uses there ps3 for bluray even when bluray was selling 75% of the HD market and there were close to no standalone players being sold! absolutely halarious.

 Yeah your right. People like me, who didnt spend 400$ on a BluRay stand-alone player, would never buy a PS3 for playing HD content, and watching movies... right?

Is that why I have a 500$ sound system, 3000$ projector, 4000$ of seats, and a 10+ foot screen, dedicated to a full theatric experience, to watch movies, in better quality, than at the theater? And I just watch DVDs, using my 150$ stand-alone DVD player? And I would think  that would have better picture-quality than, say, the PS3?

The PS3 is, basically, the best BluRay player on the market. It has the best image quality, gets the most firm-ware updates to keep the BluRay player one step ahead of the others, has more sound abilities, than a 500$ sound system can handle. (there are some sound things, that arent suppored by the PS3 that I am aware of, that arent on any discs, that some 1000$+ sound systems do support)

Most people I know who have a PS3, have at *least* 1 BluRay disc that they have bought. And most of the people I know, arent willing to buy BluRay's because a 'old' 'cheap' BluRay release is worth 25$. A *new* dvd release is worth 20$. I buy the BluRay's, just because I like the collection.

I also spend the extra 5-10$ becuase the diffrence from a DVD and a BluRay, for my 'theater' is just as big as VHS to DVD.

I can actually put the Projector out of focus by about a 4 pixel radious, and on a DVD the picture does not look any worse at all. Also, on a Digital screen. (LCD, PLASMA) in a high action scene, on alot of DVD's I can see the interlacing. It's normally hard to catch, but on a screen as big as mine, it really stands out. Also, on my sound system, the '.1' line, is really crappy on most DVDs. My sub has a slight distortion, and it sounds MUCH better with the higher quality audio.

My biggest complaint about movies released today, is a simple one. Movie cameras just arent up to par with 1080p. Quite a few BluRay movies, I've been dissapointed in, becuase the 'quality' of the 'source' video, just isnt up to snuff with the format. BluRay is a thing of the future, and I feel it is still years ahead of it's time. I think it's really great, because it allowed my dream to come true. I can have a full quality theater.  Unless it's IMAX, my projector is on par with the movies. I'm not trying to brag about what I have, but what I am trying to get across, is, the diffrence from VHS to DVD, is actually about the same as the diffrence from DVD to BluRay, the problem is, on a screen smaller than 60 inches. (3000$+ LCD screens, and 2000$+ DLP)  You cant see the quality. So unless you have that kinda money, you wont be able to 'feel' the quality increase. I am watching a DVD right now. (P.S. I Love You) And I can tell watching it on a DVD, that if I spent the extra 10$ to buy it on BluRay, I woulda been RIPPED off. The cameras they used, are DVD quality. The focus isnt 'perfect' on this movie, and thus, it would be USELESS to buy on DVD. There are only a few movies worth buying on bluRay today, truely. I do it personally, for the extra 5-10% video quality on the action movies. But on a 'true HD' movie, like, 300, Batman, Lord of the Rings... and basically anything that comes out on IMAX. I know, 2 of those I mentioned arent out on BluRay. (DOH) But they are exelent HD movies. I really never saw the diffrence from HD-DVD and BluRay. I just always liked BluRay for the simplest reason. The Scratch-proof, coating. I'm sorry, but it makes a diffrence when you 'buy' them. But as movies stand today, we have another 5-10 years I feel before all movies can truely push BluRay. And I'm not talking re-releases. I watch movies at the theater now thinking. "Damn, either they have crappy film cameras, or the projector is out of focus". Which when I first watched 300, that was the case. I mean, Would you think, you pay 24$ to take you, and your family to watch a movie, and the jerks, have the film OUT OF FOCUS. I'm sorry, but when you pay, shouldnt you expect the best?

And in refrence to modern movies, One thing, if you have a 1080p screen, and you have access to 300. (1080p trailer, or a HD release) Pause in one of the brighter scenes. And look, *really* close to the screen, and do you notice that speckling? That is the FILM. (or the CCD in a digital, they both do it). As long as you can see that, you can be assured, your system, is higher quality, than the camera that recorded that movie. It's really amazing what 1080p is. 

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actual point  agianst discussion on  BluRay sales.

First, BluRay player sales SUCK, they still SUCK, and now that HD-DVD is gone, all the promotions to drop the price of BluRays are gone. And in revrence to the above BLAAAAAHHHHH. They know that the people who have what I have, will pay the price, and the people who dont. Wont. It's as simple as that. There is no competiton between DVD and BluRay. How can you compare the two? 20 years ago, before DVD, did you compare your old-school CRT, with VHS. To a movie theater? Once DVD came out, did you compare your new 'flat' CRT to the movie theaters? Once BluRay came out, and you get a projector... You all of a sudden start to compare your system, with the 'new' digital theaters, that are better than the old film projectors... Infact, your system is better than the old 'film' projectors. So as long as that is the case, BluRay discs, And BluRay players will remain, at a premium price.

Second. The money it takes to get a HD system is ALOT of money. Unlike the most of us people on here, a VERY large protion of the US, have almost NO spending money, and live pay-check to pay-check, and in todays recession, with prices of everything going through the roof, you just cant go out and buy yourself the 3000$ TV it truely takes to warrent the player.

Third. I just thought of this. The people who DONT know BluRay needs a 3000$ TV, typically, dont understand why you would want a HD player in the first place.

And as a closing remark. Digital Copy = FUNNEH. It comes out on all these discs, and such, yet it's funny, becuase it is quite low quality, and requires a DRM friendly player, and you have to connect to the internet to sync- the 'video' to 'mom'. So actually the 'Digital Copy' Will never be able to compare to DVD/BluRay, becuase unlike DVD/BluRay, you can use without internet... Digital Copy, requires it. (to activate the device) 

DVD sales are also down by nearly 30% in most of the world, so its probably the market as a whole, or at least partially.