There was also a pretty aggressive format war between BluRay and HDDVD that tempered demand for a little while. I bought a launch PS3 as well, in part because of BluRay.

I also think it was a time where not everyone had an HD TV, nor did most people see a huge difference between DVD and BluRay, so there just wasn’t quite the demand compared to VHS vs DVD. Aside from the graphical stepup to DVD, it also didn’t need to be rewinded and didn’t take up nearly as much space. I think those two were big selling features, that the DVD to BluRay transition just didn’t have.