More bad news is on the horizon for Toshiba and other manufacturers that are behind HD DVD. Paramount, once a steadfast supporter of the format, is exercising a clause in their contract with Toshiba and is parting ways, following Warner over to Blu-ray. This may not actually occur - it only seems likely, and Paramount may come around again in the future.
Either way, a lot of it has to do with Warner's move, which is a double blow to Toshiba. More companies could follow, if Toshiba doesn't do something to restore faith in their format. If HD DVD was looking promising last year, 2008 has opened up with it looking rather dismal. Simplicity aside, it would be a shame to see only a single format come to dominate high-capacity opticals.