azsouthendzone
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Bad analogy. UMD was/is only competing with itself. Sony wasn't competing with another format.
UMD competed with SD DVD, which Blu-ray and HD DVD are in a way competing with. I'm sure a lot of PSP owners asked why they would want to pay the same price for a UMD that they would be paying for a SD DVD and decided the tiny screen wasn't that great for movies. Consumers right now ask if the picture quality is worth 10 extra bucks a disc and another 3-5 hundred for a player, and most are saying no. If Blu-Ray were to fail, PS3 owners would still have their games, and that is what the machine, I think, was primarily made for, just like the PSP. Although I'm sure Sony will fight to the death for Blu-Ray considering the stakes this time around.