New York Times Reports:
Until now, the war between the formats has seemed like a standoff. Of the big studios, Disney, Fox and Sony have backed Blu-ray. NBC Universal and Viacom back HD DVD.
Richard Greenfield, the media analyst with Pali Research, wrote that this marks the end of the format wars: "We expect HD DVD to 'die' a quick death." He noted that NBC Universal has not committed to backing HD DVD exclusively. Viacom's studios - Paramount and Dreamworks - have an exclusive deal with the backers of HD DVD, but Mr. Greenfield wonders if there is an escape clause.
Mr. Greenfield further wonders if consumers, on hearing this news, will return their Christmas HD DVD players and exchange them for Blu-ray devices. I'm not so sure that many people pay that close attention to Hollywood. But I certainly wouldn't spend money on an HD DVD player until this all sorts out.