According to sales statistics by Market Research Company NPD, Blu-ray is not a selling as well as one would expect after HD-DVD died.

Blu-ray player sales dropped 40% from January to February in the U.S. and only saw a 2 percent increase from February to March, according to NPD's Retail Tracking Service.
Apparently consumers would rather buy a cheap up converting DVD player, before dropping top dollar on a Blu-ray player.

The Blu-ray player manufacturers really need to get their act together for this holiday season. As long as the PS3 is the cheapest and only future proof Blu-ray player the install base of Blu-ray will not reach significant levels.
Blu-ray discs are now available readily in shops and also for rent. Now consumers need an affordable Blu-ray player with a price of $200-$250 with a decent feature set.
Consumers already need to spend serious money on an HDTV, a Blu-ray player has to be seen as a shoe-in for the HDTV purchase for a broader segment of consumers. The early adopters already blew their cash on a Blu-ray player they will have to replace later this year with BD-Live enabled ones like the Panasonic DMP-BD50 (photo).
Via the NPD site.