Not over yet
Don’t think this is quite a big a deal as it first sounds. WB were producing both so HD and Blu Ray so it’s not quite switching camp. What HD need is a studio to switch. This will only happen if people by more HD players, which I think will start to happen because your average dumb consumer and shop assistant will not realise which studios publish to which format. You have to remember the vast majority of these players will be bought by plebs in Argos, Dixons, Currys, Walmart, Costco etc and it is these plebs who will decide which format wins not people like us who understand the differences.
Blu ray has been given a fillip by PS3 sales but this is a false position because PS3 owners had no choice to by Blu Ray or HD but people who are buying standalone players do and they are choosing HD. PS3 sales will start to slow down after the recent price cuts and before you know it sales of HD and Blu Ray players are not too different but HD sales are people who actually want to buy HD films where the majority of Blu ray player owners won’t be buying as many films because they are PS3 owners and predominantly interested in games.
As long as Toshiba’s arse doesn’t go come Easter I reckon it will be a different story. Plus I can’t imagine Microsoft will let Sony get one over on them. (Microsoft back HD in case you weren’t aware.)
That’s my prediction anyway. It’s all about holding your nerve.