Here's a thought... not sure how original it is... but:
I know there was talk of how Toshiba, being afraid to lose the cash cow that is DVD royalties, are now pushing upconversion as an alternative to Blu-ray.
Isn't DVD a cash cow for Sony too?
I can easily see a scenario where Sony would prefer to keep both formats alive. Keep cashing in on DVDs bought by the average consumer, and charge a premium on Blu-rays for home theater enthusiasts.
I know, the main hole in this theory is that if Blu-ray really took off and replaced DVD, Sony would make even more money because of all the royalties that would pour in.
But big business think in mysterious ways. They may feel it's too lucrative of a boat to rock it. I know many people have slowed their DVD buying because of the impending HD revolution. Maybe Sony are afraid that if they try a full-on change-over from DVD to Blu-ray, movie consumers won't enter the hypnotic buy-buy-buy frenzie that we've all been in for the past decade.
Or maybe I'm talking out of my ass?
KM