According to reports, Toshiba will soon stop manufacturing HD-DVD equipment. The writing has been on the wall since Time-Warner's January announcement that it would go exclusively to the BluRay format. More recently Netflix and WalMart have announced that they will go exclusively to the BluRay format. It's unfortunate because, in my mind, HD-DVD was the superior format. It doesn't have all of the profile issues that are currently plaguing BluRay. Alas, the market has chosen a winner. The format war will soon be over. The question is, will consumers notice? Will they embrace the new format? Or will they continue to ignore the expensive high-def disc formats.
[2/19/08] Update: It's official. Toshiba announced that they will stop development and manufacturing of HD-DVD equipment.
Note: I'm not on the HD-DVD team here at Microsoft and have no inside knowledge. This is just my take based on public news sources. Don't take this as confirmation of anything.