UPDATE:
This isn't a good sign. Toshiba has "postponed" it's HD-DVD press conference at CES due to Warner's Blu-Ray announcement. Most likely they are trying to figure out a way to turn this into a positive. "We never wanted Fred Claus on HD-DVD anyway." Source.

Depending on who you are, this is either huge news, or just another move in the almost never-ending HD Format Wars. Warner Brothers has announced that as of May, it will no longer be supporting the HD-DVD format, distributing their titles exclusively on Blu-Ray. 

WARNER BROS. ENTERTAINMENT TO RELEASE ITS HIGH-DEFINITION DVD TITLES EXCLUSIVELY IN THE BLU-RAY DISC FORMAT BEGINNING LATER THIS YEAR Decision Made in Response to Strong Consumer Preference for Format

(January 4, 2008 - Burbank, CA) - In response to consumer demand, Warner Bros. Entertainment will release its high-definition DVD titles exclusively in the Blu-ray disc format beginning later this year, it was announced today by Barry Meyer, Chairman & CEO, Warner Bros. and Kevin Tsujihara, President, Warner Bros. Home Entertainment Group.

"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," said Meyer. "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."

Warner Home Video will continue to release its titles in standard DVD format and Blu-ray. After a short window following their standard DVD and Blu-ray releases, all new titles will continue to be released in HD DVD until the end of May 2008.

"Warner Bros. has produced in both high-definition formats in an effort to provide consumer choice, foster mainstream adoption and drive down hardware prices," said Jeff Bewkes, President and Chief Executive Officer, Time Warner Inc., the parent company of Warner Bros. Entertainment. "Today's decision by Warner Bros. to distribute in a single format comes at the right time and is the best decision both for consumers and Time Warner."

"A two-format landscape has led to consumer confusion and indifference toward high definition, which has kept the technology from reaching mass adoption and becoming the important revenue stream that it can be for the industry," said Tsujihara. "Consumers have clearly chosen Blu-ray, and we believe that recognizing this preference is the right step in making this great home entertainment experience accessible to the widest possible audience. Warner Bros. has worked very closely with the Toshiba Corporation in promoting high definition media and we have enormous respect for their efforts. We look forward to working with them on other projects in the future." 

HD-DVD still has a number of influential exclusives, like Dreamworks, Paramount, and Universal, but the loss of a big studio like Warner Brothers has to hurt. As a PS3 owner, I find this news rather comforting. No one likes to see a fight, especially one that could render part of your movie collection obsolete.

In other news, rumors have started to surface that this years MacWorld will see Steve Jobs announce Blu-Ray support on Apple's higher end G5 computers.

[Source Gizmodo] 

UPDATE:

This isn't a good sign. Toshiba has canceled "postponed" it's HD-DVD press conference at CES due to Warner's Blu-Ray announcement. Most likely they are trying to figure out a way to turn this into a positive. "We never wanted Fred Claus on HD-DVD anyway."

[Source Gizmodo]