The Financial Times has a report saying that Paramount can drop out of their HD DVD contract in case Warner decides to back Blu-ray.

If Paramount is really switching sides as well, then the HD DVD Groups decision to cancel all meetings at the CES 2008 really marks the end of HD DVD.
The HD DVD group issued a statement on Monday, that HD DVD has not lost, despite Warners's move to Blu-ray. Toshiba said also on Monday that HD DVD Player sales hit 1 million in North America.

No matter who wins, some high definition format needs to win already so the new level of home theater experience can take off for good. I finally want to be able to rent Blu-ray or HD DVD discs as I can rent DVDs today.