EU is investigating BD/HDDVD formats to determine which to support
Business wise, I am not sure exactly what DIRECT-benefit the EU's endorsement of any format would bring, since it is the companies doing business in the EU that determine which is going to be bought. However, Sony would still want to respect the EU's power, since the EU frequently involves itself with companies dominating the rest of the market, and those that trample on their worker's rights.
On the eproductwars.com website, HDDVD has been pushing prices down hard, to the point where its HD format's DVDs are as cheap as BD's. This is a big change from the past month or two when HDDVD was more expensive by about $12-$14. Toshiba has also introduced a HDDVD burner for its laptops, but this also, will provide little competitive advantages since Sony can just add the same thing to its laptops.
Overall, Toshiba's price chopping has been a double edged sword for them. On one hand, it has allowed the HDDVD format to stay in business, but on the other, it has made it to where only Toshiba has been interested in producing HDDVD players, because any companies interested would know that they would have to sell at a loss.