VIAArena looks at the pros and cons of Blu-ray and HD-DVD in their latest article:

Because HD DVDs use the same type of discs as current DVDs and also the same technology design in players, the cost of both HD DVD media and HD DVD players will remain lower than Blu-ray media discs and players. To manufacture a HD DVD player, a manufacturer does not have the costs involved with a drastically new production line or product development and design costs. To generalize, at this point in time, early indicators suggest that Blu-ray players will cost around US$1000, twice the cost of a HD DVD player.

On the other hand, the fact that Blu-ray discs are virtually scratch resistant is an appealing characteristic. Furthermore, the layer of a Blu-ray disc is only 0.1mm whilst a HD DVD disc layer is 6 times the thickness; so potentially, Blu-ray technology has the capacity to advance to multi-layer discs that would far surpass the maximum capacity of HD DVD technology. Also, so far, Blu-ray on paper (and one their web site) have more support from software vendors, electronic device manufacturers and movie studios.