The writers strike will drag on. The studios make their real profits on these extra item such as residuals. If they agreed, the risk to operate would be much greater.
It's crazy how the entertainment industry works, writers/directors/actors get paid good money up front and also on the back end, where the Production Companies only make money on the back end. And they don't see a dime until everyone is paid their cut first. The average cost of a film in 2006 was 100 million dollars (including P&A). The Box Office has to be almost 4 times that amount for the studio to start turning a profit, however the writers/directors/actors will see the money way before the studios. Plus, everyone is upset because on the last strike they didn't fight for DVD's but they fought for VHS and won so they see that as losing money. The only thing that this strike is going to hurt is the consumer. Ever wonder why VHS tapes were always so much more than DVD's? Not sure if that is going to happen, but something to think about.
Also, what about the other unions? The grips, gaffers, DP's, PA's, sound mixers, eletricians, prod. designers, make up, etc., etc. who are just as valuable to every production as the writers/directors/actors? Do they deserve a cut?