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The New York Times suggests that HD-DVD's backing from Microsoft, Intel, HP, and LG, in addition to a potential delay of the PS3 is enough to make the format wars a heated battle.
Sony was expected to release the PS3 in spring, however, most predict that the system and games will not be ready for launch in any territory, and thereby stalling the release of a mass market Blu-ray player to retail.
The electronics giant is betting that the PS3 will drive the Blu-ray format into living rooms and clinch a win for the internally developed format.
"The PlayStation is more than a game system to them; it's one of their attempts to own the digital living room," Robert Heiblim, a consultant to electronics companies, told The New York Times.
"Blu-ray is also critically important to get right. They don't want to be weak in an area they feel they can dominate."
Toshiba's first HD-DVD players will drop to retail in March, with an introductory machine priced at $499.
By comparison a Samsung Blu-ray player will carry an MSRP of $1,000.
In addition, Sony may face huge losses from the more expensive Blu-ray technology and from the Cell processor included in the PS3.
Merrill Lynch estimates that the PS3 may cost $800 to manufacture.
To counter the effort, Microsoft will release an external HD-DVD drive for its Xbox 360 console.
Analysts estimate that the format wars may not see an outcome until several years of consumer adoption at retail.
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