PS3 is doing fine, it outsold the 360 in the last sales reporting period in the US, and has been outselling in the rest of the world for some time. Not bad given that no "system seller" software has yet been released, such as GT5 or MGS4, and the $600 initial pricepoint.
As for HD DVD:
http://www.reuters.com/article/businessNews/idUSL1637974620080216
TOKYO (Reuters) - Toshiba Corp (6502.T: Quote, Profile, Research) is planning to give up on its HD DVD format for high-definition video, conceding defeat to the competing Blu-Ray technology backed by Sony Corp (6758.T: Quote, Profile, Research), a company source said on Saturday.
Japanese public broadcaster NHK had earlier reported that Toshiba would suffer losses in the tens of billions of yen (hundreds of millions of dollars) as it scrapped production of HD DVD players and recorders and took other steps to exit the business.
The company source told Reuters that Toshiba was in the final stages of planning to exit the HD DVD business and that an official decision would be made soon.