There are a lot of factors in this issue.
My opinion is that even if there wasn't a format war, mass adoption of a Hi Def DVD format is not going to happen anywhere resembling the speed of standard DVD.
Traditional DVD is going to be the prime source of revenue for all studios for many years to come. The concept of HiDef taking over Standard Def is probably at least 6-8 years away from its launch, even if there is no format war.
There are still 30% of American households that don't have DVD players......
I think you will continue to see great new releases from Warner and Criterion this year, as well as reissues from Paramount of a select group of titles from the Spelling/Republic/NTA library that will be reverting from Lion's Gate f/k/a Artisan. It's overall a pretty lousy library, but there are a few John Wayne jewels like QUIET MAN, the ubiquitous IT'S A WONDERFUL LIFE, the great JOHNNY GUITAR and INVASION OF THE BODY SNATCHERS, and the amazing Paramount pre-`1949 cartoon library (sans Popeye) that they may put a fresh coat of paint to as they have pretty much scraped the bottom of the barrel from their own library. They have released more than a hundred really obscure post-'50 Paramount features that have sold VERY poorly (per Neilsen Videoscan). So this will be helpful to this.
Sony and its distributed label MGM, are pretty much lost causes at this point. Their records speak for themselves.
Warner is the only studio with literally hundreds of important films that have yet to see DVD release, and yet we know that 99 44/100% of the time, what they do is worth the wait.
Fox and Universal each have several dozen excellent films that have yet to see DVD release that could be profitable for them, but both companies actions reflect that they have no one internally who really understands their respective libraries. If they did, Fox would have released THE DOLLY SISTERS or MOTHER WORE TIGHTS or even MOON OVER MIAMI as their first Betty Grable DVD musical. Instead, they chose a title that anyone who isn't familiar with her films would seem obvious...PIN-UP GIRL. A mediocre film, but one that reflects knowledge of her in the historical/sociological realm, in terms of her WWII pin-up status, as opposed to someone who actually WATCHED the films, and looked up their past box-office. This problem of ignorance, or lack of knowledge runs through every studio with the exception of Paramount and Warner.
Paramount has fallen short in the "extras" department time and time again, with the exception of the BATJAC titles they paid a fortune for this year, and where they had to deal with the approvals of Michael Wayne's widow (John Wayne's daughter in law), who, from, all accounts I've heard, is a sharp lady who actually directed Paramount as to what extras each title should have. I can't say this as fact, but I've heard it from too many disparate people, so it's likely true.
The other huge problem is the influx of bad, unpopular TV shows that no one wants, clogging up shelves and retailer's "open=to=buy" dollars.
I mean really, is the world waiting for THE JOEY BISHOP SHOW on DVD? or THAT'S MY MAMA, or the unknown one season flop GOOD MORNING, WORLD?
Yet, they are out or coming out or are already out, from both big studios and little labels , taking away the potential (and shelf-space) for success of good product that HAS an audience and WILL sell well.
If I could ask anything of the video industry it would be to stop re-issuing titles that didn't need to be re-released (Paramount's DON'T CALL ME SHIRLEY edition of AIRPLANE, Columbia multiple reissues of ANNIE and OLIVER, or Universal's 3rd or 4th well-dip on BREAKFAST CLUB or ANIMAL HOUSE, as well as the industry's responsibly looking at TV on DVD releases, and only releasing shows that have a full potential if marketed correctly. If a show was a flop the first time around (ground-breakers like FAMILY GUY or ACTION not-withsdtanding) it will be a flop on video.
Lastly, we as consumers need to step up and support good releases, if it is within your financial means. I've bought many titles that still remained sealed on my shelf, as I had no urgent need to watch them, but I wanted to support their release, so that more bona fide classics would arrive.
Granted, it's like voting. My one purchase doesn't make a difference, but when you've got Warner releases like the phenomenal CONTROVERSIAL CLASSICS box or Paramount's ONCE UPON A TIME IN THE WEST, it is a good idea to let your friends know what great purchases these are. Ditto an upgrade on a previously released title. There have been horrific disappointments in this arena (can one say OKLAHOMA!), but releases like the new OZ and last year's GONE WITH THE WIND show that such initiatives can be exceptional.
In summation, there is and will continue to be, a great money to be made in this business of standard DVD for years to come, as long as the people making the decisions know the product they are selling, and didn't get to their respective studios after selling hair dye or toothpaste in their previous jobs!