Let's not turn this into another flame fest...
This is the article
Quote: "Warner announced on Jan. 4 that it would release only high-definition Blu-ray movies starting July, ending its support for the rival HD DVD format."
Combine this with the sales of BD vs HD-DVD and I think we can guess the outcome of this format war.
Quote: "Sony's efforts to shrink the PS3's chips and tweak its design. Already such changes have cut the cost per machine to around $400 now, from above $800 just before it went on sale in November, 2006"
This is probably for the new cheap 40 GB stripped out model (it doesn't really say). High price and lack of games have been the big weak points for PS3.
Quote: "The console's sales have picked up in recent months after Sony cut the price in October, introduced a $399 model in November, and lowered the fees it charges game developers in a bid to broaden its games offering."
That took them some time...
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