The problem is that while HD DVD could afford to keep fighting, and could stick around for years if they wanted to on bribed studios and cheap subsidized players, they won't. Their strategy is only profitable if they win, and on top of it, their players go mainstream. It's entirely possible, even if they had beaten Blu-ray, Fox went neutral, Warner went HD DVD and Disney had to go neutral as well... Sony and the PS3 would keep Blu-ray afloat, alone... for a little while. The standalones would crash, and nobody would want one, but the PS3 owners would continue to buy whatever was available, and for a year or so Blu-ray would remain on retail shelves. In fact, I have to say, the PS3 and Sony Pictures alone meant that HD DVD would never have become popular enough to justify the investment put forth on it.
At this point, it should be obvious to Toshiba investors. Even if the management want to continue this war, the investors are not going to want to keep pushing forward with no hope of profit. Even if after a 4 year long battle, with spectacular turnarounds, at the end of it, could HD DVD in its wildest dreams do anything except hurt Blu-ray? Could it actually become self sufficient and profitable enough to justify the effort it would take to get there?
At this point I dont see Toshiba making any more unprofitable moves, which means I don't see them continue to give an financial incentives to movie studios to remain exclusive. This being the case, the remaining studios are going to come to the same conclusion Warner did, only it'll be an easier choice for them now that Warner already made the answer more apparent.
There's not much that can be done. Microsoft's shills have already abandoned HD DVD, made their parting insults directed towards Blu-ray and declared that Digital Downloads is the future and always was.
Myself, I believe that in the future digital downloads and Blu-ray can live together, with people picking up their movie in the store, or downloading to their computer, and copying to a usb 3.0, 200 gig flash drive or burning it on their blu-ray burner to play on their tv. People are either going to buy the media directly or want to burn hard copies themself so they don't have to take up storage space for their collection and it's most secure from any technical glitch. If you ask me, that's the future, where digital downloads will help us if we don't want to go out to the store, or want an obscure movie that retailers don't want to stock. All their while, our physical media can be stored to PC or our digital media can get stored physically. Is there any other possible future really? Are people going to abandon owning discs? Are brick and mortar stores all going to close shop, and Walmart stop selling discs? The scenario is highly unlikely, at least for many, many years. But by that point, we'll probably have TVs with higher resolution than 1080P, and movies will be pressed on 200 gig blu-rays, with players that stream 4 times the data per second, and most theaters themself will be showing film at higher resolution, with new technology.