Microsoft make a good analogy
In an interview with Spiegel Online, Xbox's European Manager,Chris Lewis, has compared Sony's Blu-Ray technology to Betamax, whilst comparing HD DVD to VHS.
Betamax, the videocassette tape recording format introduced in the 1970's, rose to a peak in the early 1980's, where it controlled a third of the UK video recorder market.
The Video Home System (VHS) then showed up and fought a vicious war with Betamax in the 1980's. VHS came out on top, and the Betamax format disappeared without a trace, in fact it became embarrassing to own a Betamax video player.
Lewis had clearly thought hard over his analogy, he said, "Blu-ray right now reminds us of another technology from Sony: Betamax. A bit like VHS -- we think that HD DVD is the format that consumers, film studios and publishers will embrace. As you're mentioning the cost of Blu-ray -- we think it's about giving consumers choice, we think it's about not necessarily asking them to pay over the odds for a technology that, at the moment, is unproven. It's an interesting bet to play -- we're watching what goes on, but I think we're offering a broader, more flexible choice that doesn't burden the consumer with a cost element that may be wasted."
The battle rages on! It's a good job that Nintendo and Sony are next to each other at E3, otherwise there could have been fireworks.
Source: Read the interview here