Through the course of the HD format war there have been some pretty wild rumours flying around but the latest one to surface takes the prize. According to The Holywood reporter, "reliable industry sources" are indicating that some time over the coming weeks Toshiba is likely to pull its support for HD DVD and let the format die.
According to these sources Toshiba is unable to sustain the losses it is making with the insane price cuts on its HD DVD players and hasn't seen any benefit from the increased drive to persuade consumers that HD DVD is the format of choice. Official word from Toshiba, though, is that there are no plans to cull the format as yet although the company "will continue to study the market impact and the value proposition for consumers, particularly in light of our recent price reductions on all HD DVD players" which is as unhelpfully ambiguous a statement as one could ask for.
It looks like Warner's defection, directly or indirectly, may end up having been the straw that broke the HD DVD camel's back. Ever since the CES announcement Blu-ray hardware and disc sales have been increasing and the format has been steadily gaining market share over its rival.
Given the predicted timescale of weeks before any announcement might be made, it seems unlikely that Toshiba is taking the idea of throwing itself into its own sword lightly, but at this stage it doesn't really look like there's any other option. As I've said before and will continue to say, as long as one format wins out in the end it doesn't matter which it is.