Surprise, surprise, eventually Sony does seem to be capable of creating a format that the world will accept as a standard. Lord knows how much this is costing them, as I'm willing to bet that that some sort of financial incentives changed hands to get this to happen, but Warners has decided that they want to be firmly in the Blu-ray camp in an effort to help end confusion in the marketplace and in turn speed up adoption of Blu-ray as the next generation disc based video format.
News is out in several outlets, including USA Today, HighDefDigest.com, and others.
I am truly saddened by this, and wish that whatever else needed to be offered to Warners by the HD DVD camp had been offered and provided. I still, very much, fear having Sony and their friends at FOX, Disney, etc., in charge of the DRM schemes that will be foisted upon users in the Blu-ray format. Having competition in the marketplace had led to great deals on media (software), and more and better features on the discs that I had been buying lately.
HD DVD had been consistently kicking Blu-ray's butt when it came to cool features, and if HD DVD isn't around to compete, I fear that the Blu-ray camp with be complacent and offer up the bare minimum in the name of cutting cost and corners to rush product out so that lemmings can buy it, whether it contains any extras or not.
Universal and Toshiba may opt to stick this out long term, and Universal and Toshiba may keep backing the truck up in front of their friends at Paramount/Dreamworks, but I really doubt that will be the case. Eventually those folks will jump on the Blu bandwagon and we'll see a single format. I would just caution those that have screamed so much for a single winner in this market place to be prepared to hear me screaming that they got the solution they deserved -- higher prices, crappier products, and a FOX (and Rat, I mean Mouse, along with Sony) in charge of the DRM henhouse that would be more than happy to bite the users on the butt, hands, or any place else.