Clint DeBoer from Audioholics thinks that both HD formats have already failed. I'm not sure I completely agree, but he has some very good points.

His Reasons (which he elaborates on in the article)
1. Nobody likes false starts.
2. Format wars don’t sell players.
3. HD DVD and BD are NOT quantum leaps in technology.
4. Studios are conservative, greedy, and unmotivated.
5. PS3 can’t save the world.
6. Those who ignore history… [SACD and DVD Audio]
7. People want technology that’s 15 minutes ahead of its time.
8. Enthusiasts are getting tired (and smarter).
9. A skeptical news media doesn’t help.
10. Broadband and IPTV to compete?
Read the entire article here