According to a poster on NeoGaf, who has associates in the CE business who are in Vegas right now for CES show. They indicate their may be another escape clause in the contract pertaining to sales that might kick in for Paramount though. If HD DVD sales totally crater as expected after the Warner announcement, they may have another opportunity for an early out, but that would likely be based on quarterly sales targets, if his speculation is correct, and still wouldn't likely kick in until the end of the next quarter, at earliest.
All of them thought it was more likely that Universal would jump before Paramount, and that was the main reason they were surprised by the news when it came out. According to them, nobody in Vegas would be very surprised to see Universal jump at any point now.
According to everyone I've spoken to so far, the main impression among everybody in Vegas is that it is all over for HD DVD. Buyers for retailers are telling them this too, which is significant.