HD-DVD costs less to manufacturers too. It takes relatively little time and resources to convert from producing SD-DVD to HD-DVD, as you can alter the existing hardware. Blu-ray requires completely new hardware. HD-DVD discs are more than adequate for high definition home cinema.

Am I right that Microsoft came out on the HD-DVD side?

And since when did being the 'better' format EVER mean that it could win the war? It doesn't work like that. I still hear people shaking their heads and sorrowfully intoning: "Betamax was the better format, you know..."

I have to say I disagree with Mielr on the possibility of HD OOT releases - I don't think it'll make a bit of difference to future releases of the OOT if this one in September is a financial success. In fact, I think it would be more damaging. LucasFilm would be justified in thinking that everyone is perfectly happy with the 4:3 letterbox Laserdisc copy so why bother making an HD transfer?