01.06.2008 — Late Friday afternoon, Warner Bros. -- the largest studio supporting both high-definition DVD formats -- announced that it will be backing only Blu-ray starting in May.

Warner had been releasing its titles in both Blu-ray and HD DVD, but according to a press release, the move was made in response to consumer demand.

"Warner Bros.' move to exclusively release in the Blu-ray disc format is a strategic decision focused on the long term and the most direct way to give consumers what they want," says Barry Meyer, chairman and CEO of Warner Bros.

"The window of opportunity for high-definition DVD could be missed if format confusion continues to linger. We believe that exclusively distributing in Blu-ray will further the potential for mass market success and ultimately benefit retailers, producers, and most importantly, consumers."

In response to Warner's decision, the HD DVD Promotion Group canceled their planned press conference at CES. In an email to attendees, the HD DVD group says they are "currently discussing the potential impact of this announcement with the other HD DVD partner companies and evaluating next steps."

Rumors are swirling around the Internet that Warner Bros. was paid $500 million to go Blu-ray exclusive, but according to EngadgetHD, Warner Bros. Home Entertainment Group president Kevin Tsujihara has denied those claims.

Toshiba, the biggest backer of HD DVD, sent out a press release implying that Warner may have broken contracts with its decision.

This is obviously huge news in the format war, and may catalyst it to an end.

Toshiba has a press conference scheduled for Sunday, 10 AM PST, and CE Pro will be there to bring you reactions from CES.