This might be the straw that broke HD DVD's back if it turns out to be true.
According to a story from London's Financial Times, Paramount is looking at abandoning the HD DVD format it signed on with less than a year ago. The story states that there is a clause in Paramount's contract with HD DVD that would allow the studio to get out of its contract if Warner Bros. did in fact switch over to Blu-Ray exclusively. Since that scenario is now a reality, it appears that Paramount may indeed use that clause and switch over exclusively to the Blu-Ray format. It is unclear if Dreamworks Animation, which signed its deal with HD DVD at the same time as Paramount, has the same clause in its contract.
If this scenario does unfold as reported, that would leave only Universal Studios as the only major studio supporting the HD DVD format. Universal declined comment for the Financial Times story.