Looks like its finally over. With the defection of Warner Bros studios earlier this year being cited as a key reason, and also undoubtedly the decision by WalMart to join other key retailers in offering BluRay only (Best Buy, Target, Blockbuster, Netflix) sources are reporting Toshiba will be dropping support for HD DVD hardware. The earlier report this year of Microsoft suggesting a BluRay option for the xBox is somewhat important, but not viewed as a major deciding factor.
http://news.yahoo.com/s/pcworld/20080216/tc_pcworld/142579;_ylt=AjyxuFxOr6Wp0AIh.v1CUoQjtBAF
http://news.yahoo.com/s/nm/20080217/tc_nm/toshiba_hd_dvd_dc;_ylt=AuRs0PSQRBirbuccc53tw9IjtBAF
http://news.yahoo.com/s/pcworld/20080216/tc_pcworld/142579;_ylt=AjyxuFxOr6Wp0AIh.v1CUoQjtBAF
http://news.yahoo.com/s/nm/20080217/tc_nm/toshiba_hd_dvd_dc;_ylt=AuRs0PSQRBirbuccc53tw9IjtBAF