Microsoft and Intel chose HD-DVD. This has to be a blow to Sony and their Blu-Ray format. The coming war between HD-DVD and Blu-Ray is a topic I've covered a few times. I hoped it would be settled before either was released, but the public will choose the outcome. Toshiba announced their will be releasing their first PC with an HD-DVD ROM early next year, though HD-DVD players are expected to debut in the final weeks of this year. Blu-Ray players and computers are not expected until next year, giving HD-DVD a slight time advantage.
The major difference between the formats are that HD-DVD will be cheaper to manufacture, but Blu-Ray will have greater capabilities. I believe HD-DVD's early release and cheaper price and Blu-Ray's technical advantage won't matter much. I think the winner will be the one who markets best and finds an audience. HD-DVD may succeed because it uses the well-known term of DVD. Or Blu-Ray may succeed because of Sony's PlayStation 3. Or both could fail to take off as the public's choice for the next format. Only time will tell.