This is another major blow to Blu-ray as this industry has a tendency to drive technology:
Quite famously in the war between Betamax and VHS the latter won especially because the adult industry preferred it. If you've been around long enough, you probably remember that the very early home video rental stores were primarily responsible for driving Betamax out of the market. And those stores carried almost exclusively pornographic content.The adult industry says Blu-ray has higher quality but it's more expensive to produce. They also say that HD DVD is already more widespread than Blu-ray, as many people already have a HD DVD player in their Xbox 360. More info at TG Daily.
Although the market environments from then do not really compare to today's home video market, parallels are drawn between the Betamax-VHS battle to the ongoing and escalating fight between Blu-ray and HD DVD. One of the key questions at this year's CES actually is "Which high-def format will win the current format war - Blu-ray or HD DVD?" Surprisingly, it seems that there is no such question in the minds of the adult industry luminaries.