Just a quick update... the L.A. Times is now reporting that Warner's switch did in fact trigger Paramount's out clause with HD-DVD. Here's the relevant text from the story:
"Warner Bros.' decision last week to start making movies exclusively for Blu-ray players, rather than HD DVD, triggered an "out" clause in Paramount Pictures' contract with the HD DVD camp. An industry source said there was a significant possibility that Paramount would exercise that clause. It plans to decide within a month.
Paramount officials said they would continue to support HD DVD, a format for displaying videos in higher quality whose backers include Toshiba Corp. and Microsoft Corp. Universal Pictures, which has been a strong supporter from the beginning, issued no public statement on the matter here."
Meanwhile, the same story reveals that Toshiba has been in meetings with its retail partners about their continued support of HD-DVD:
"Toshiba said Tuesday that retailers have expressed their commitment to HD DVD during private meetings at the show, which is the world's largest consumer tech gathering."
As to whether or not retailers would abandon HD-DVD immediately, the story offer this comment:
"Industry executives said it would be unusual for retailers to abandon any format so soon after Christmas, for fear of sparking a flood of returns."
The plot thickens. The key thing to note is that it seems as if the remaining HD-DVD supporting studios plan to take their time making any major decisions, which is smart. It gives them time to develop their own plans, to see what the fall out from CES is, etc. So don't expect any more major announcements in the next couple of weeks at least. As we said earlier, everyone take a deep breath, and let's just have patience while we all wait to see how things play out in the next month or two.
Meanwhile, there's plenty of other CES coverage coming, so stay tuned...