Looks like it may be the case. If so, it'll be a good thing; Blu-Ray is technologically the better of the two competing formats, by a significant margin. The main attraction of HD-DVD is a smaller initial capital outlay for the equipment to press the discs.
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On the other hand, I've heard that many folks buy a PS3 mainly or solely to play Blu-Ray movies since it's one of the least, if not the least, expensive players available. However, I couldn't tell you what percentage of PS3 purchases this group comprises. It's probably pretty small, on the order of 10% or less.