That is the question. Wal-Mart is officially saying they didn't pick sides, but their spokesman did also say they expected consumers to pick a winner in the coming months. Currently they sell the $350 Toshiba HD-D1 HD DVD and the $900 Philips BDP900/37 Blu-Ray player.
But this was a leak and it never was Wal-Mart's intent to announce to their competitors that they expected to do to the DVD market what they had done to the TV market over the last several quarters. They want to own this market much like they currently own 40% of the regular DVD space.