http://www.gamespy.com/articles/844/844151p1.html

According to the Reuters article, as a part of Paramount's contract clause with the HD-DVD Group, the film studio is able to end its exclusivity deal should Warner move exclusively to Blu-ray. It appears that,

should I now BR or not?  What will happen to my $179 HDDVD player?  Maybe I can sell it!

Good news for Sony and all the BR fans.  If this really happens (and I think it will) then the battle is over and the consumers will have to pay more for BR merchandise. 

Didn't paramount already deny that?

This thread has already been made. But since i support Blu Ray I'll say that thats great news, if its true. Maybe Auron is right and they denied it, but once Blu Ray is outselling HD DVD by about 10x then they will have no choice but to jump ship.

Even if it's not true, the current contract ends before the holiday season. I don't think Toshiba can cough up enough money to keep Paramount in their camp any longer - there's simply too much to lose by sticking with the losing format. You'll have Transformers on BluRay before the sequel comes out.

I think this is true.
and sorry for the double thread.

@coolestguyever
I agree HD-DVD will lose paramount without a doubt but i think that they denied that they will break their contract. They will wait it out and then switch.

Whooooo Caaarreesss!!!

Universal isn't renewing it's contract with HD-DVD at the moment.

http://www.engadget.com/2008/01/10/universal-hd-dvd-exclusivity-contract-has-expired-sits-non-rene/

if thats true thats a pretty big blow for HD-DVD

Well this was bound to happen soon enough.