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Is Blu-ray dead? Tech Sites around the Net are calling it a “death spiral” and we’re now looking at the downfall of the winning high definition format. Many non-PS3 Blu-ray players are still in the USD $200.00 range, a bit high for mass market adopters, and people aren’t planning to run out and buy a Blu-Ray player in our economic slump.

What’s the market share of the Blu-ray product? Four Percent. Blu-ray and the PlayStation 3 have a lot of battle scares after the fight with HD-DVD to “win” the format war. In the end, Sony won the battle but the war was not with the HD-DVD format, it’s with the average Joe consumer.

Does this effect the PlayStation 3? One of the up sells of the PlayStation 3 was the Blu-ray capabilities, it games and it’s an entertainment device all-in-one. It’s a great deal right?

“The advent of low cost up-sampling DVD players dramatically cut the video quality advantage of Blu-ray DVDs. Suddenly, for $100, your average consumer can put good video on their HDTV using standard DVDs. When Blu-ray got started no one dreamed this would happen.” (zdnet)

The obstacles against the Blu-ray format are huge, especially with NetFlix coming to the Xbox 360, high definition download options and licensing costs on the Blu-ray to movie creators. Blu-ray won’t die in this generation of PlayStation 3 consoles but many folks, including Apple, are pausing to see if it has any chance at all to break into the industry.

Four percent just isn’t enough to inpsire confidence.