SANYO, NEC, Toshiba and Memory-tech are forming the group HD-DVD starting summer 2005. They are going against a well organized consortium consisting of Dell, HP, Hitachi, LG, Matsushita, Mitsubishi, Pioneer, Philips, Samsung, Sharp, Sony, TDK and Thomson.
As mentionned both technologies have pros and cons. Among the pros for HD-DVD is back compatibility for older media and lesser technology changes on assembly and construction lines for media.
However, storage will be bigger with blue ray (right now, 50 G vs 30) Note that blue ray medium require a protective coating which considerably increases the weight and complexity of building the mediums. I guess we'll know in a few years....