Wb and its owned New Line drops HD DVD after May 2008 when the current contract expire and will be using BD.

In response to consumer demand, Warner Bros. Entertainment will release its high-definition DVD titles exclusively in the Blu-ray disc format beginning later this year, it was announced today by Barry Meyer, Chairman & CEO, Warner Bros. and Kevin Tsujihara, President, Warner Bros. Home Entertainment Group.

WB owns one of the biggest library of films. HD DVD without WB on board will surely impact the HD/BD controversy for the benefit of BD.

Warner Home Video will continue to release its titles in standard DVD format and Blu-ray. After a short window following their standard DVD and Blu-ray releases, all new titles will continue to be released in HD DVD until the end of May 2008.

That is as good as dead. Releasing HD “after a short window” is just to keep the contract with toshiba in place. And even this will stop after MAY 2008.

Toshiba is quite surprised by Warner Bros.' decision to abandon HD DVD in favor of Blu-ray, despite the fact that there are various contracts in place between our companies concerning the support of HD DVD.

Act surprised for press release…  HD DVD promo group posponded (cancelled) the press conference at CES after the WB announcement and are currently discussing this issue with other HD DVD partners. It is a blow to HD DVD and a big one no matter how you sugarcoate it.