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If Blu-ray can't get cheap enough (players and discs), people will not buy them in volume. Too be honest, disc sales right now are so abysmally low compared to DVD (tens of thousands vs 10s of millions) that any lead that one format has over the other in disc sales is insignificant. It will take a large number of players to facilitate the large number of disc sales, and very few standalone Blu-ray players have been sold. Nevermind the fact that somehow, less than half of PS3 owners know it does Blu-ray.
I think it is still anyones game. That's my $.02.