Well a few comments. Asia and Europe are very important. If you all have followed the news lately, Blu ray is under investigation by a European Commission regarding their marketing techniques( ie bribery; pressure tactics) as European movie studios are adopting HD_DVD over Blu Ray for Hi Def movies due to more than one factor. The rest of the world just doesnt through money and influence around like SOny and it is causing very strong resentment.
The reason why Sony doesnt reduce pricing further is they can't do so very easily, as they lose money as it is every time a PS3 is sold. Huge losses that, frankly, are not sustainable.
As far as Walmart and Sams--yes they carry both for now--but HD-DVD has been licensed to Chinese manufacturers and 199 players for HD-DVD will arrive in time for Christmas it seems. Becuase of the mounting losses for Blu Ray and Sony- HD-DVD only needs a stalemate to win, not a victory.
As Hi Def DVD adoption rate increases ( its miniscule now) eventually everyone is gonna have to make movies in both formats in the US as far as Major Studios. Right now, Standard Def DVDs still rule, ad they are quite acceptable to most folks ( me included, although the 1080P stuff is quite incredible if you have the FP, display and player).
It is gonna be a long one, but since HD_DVD can sell players and Titles at lower pricepoints without sustaining the same level losses as Blu Ray, they should win out.
Also, Blu Ray machines need a lot of memory to do those interactive features as well as an ethernet connection. The players dont have it right now, Tosh stuff does, and as those differences come to mean something, it will only widen the gap in offereings or price or both.