It seems like for every salvo that Blu-ray and HD-DVD lob at each other, another company comes up with a solution that could possibly end the format war.
In a story from Variety, they report that NEC has begun shipping chips that can "handle both Blu-ray and HD DVD formats" and would in effect allow hybrid players to be made.
NEC went on to say that the chips "made in two types, will sell for about the same price as chips for the Blu-ray or HD DVD formats only." By next April they hope to ship 300,000.
The only problem with all this is that "optical pickup technology" for the formats isn't currently available. Another sticking point is "that licensing terms for Blu-ray players may rule out hybrids."