Quote
Since ALL PS3 games are delivered on a Blu-Ray format disc- The likelyhood of the PS3 not being a major games success insures Blu-Ray as a format for a long time. They may not being playing movies as you said, but as a disc delivery format Blu-Ray seems positioned well, if only for games; the movies will come along for the ride, even if HD-DVD is still around... especially since all but one studio will be releasing in BR regardless of HD-DVD.
I certainly agree that if anything, ensuring all PS3 games come on BD-Roms will mean discs will always be in mass production. Above anything else I believe that's actually the real reason (above the claims of superior copy protection) Sony have insisted all games will be BD based in the first place. It's a smart move on their part. It might not be financially sound for third party developers, but it'll always ensure Bluray production continues in some capacity should it fail as a pre-recorded movie format.

If the movies are not selling though, studio support will dwindle just as it has for UMD titles on the PSP.

Studios and manufacturers will go where there's money to be made of course. I think both formats right now boast different strategic advantages. Nobody is bound to any one format exclusively (save the one unnamed studio Sony allegedly paid outright to support Bluray). Should the HD DVD players begin selling well over the coming months, those supplying hardware and content will migrate to supporting both. Really, if anything, this is going to turn into a battle of who has the best marketing.