Paramount, Universal to Be Free if Toshiba Drops HD DVD

Paramount and Universal, the only two studios still exclusively supporting HD DVD, will be "immediately released from their commitments" if Toshiba, as widely reported, drops the format this week.

That's according to the Wall Street Journal, which cites a person "familiar with the situation."

Warner Bros., which announced before CES that it would be halting HD DVD production in May, would also immediately freed from any agreement.

We've already seen reports of HD DVD titles on Blu-ray in the wild, as our friends at EngadgetHD are showing a retail listing for Transformers on Blu-ray. It's a rumor, so take it with a grain of salt, but we know that director Michael Bay is happy.

Last August, Paramount and Dreamworks switched from providing their movies on both formats to HD DVD exclusivity, with a reported $150 million payout from Toshiba and crew.