How does this make any sense?  There was only one studio previously in favor HD-DVD only, and BluRay was winning the high-def battle 2:1.

Now these two decide to go HD-DVD only?  We were just about to finally see an end to this generation’s format war.

Thanks for nothing, guys.  Smell ya later.  Smell ya later for GOOD.

Paramount, Dreamworks dropping Blu-ray in favor of HD DVD exclusivity – Engadget:
Affiliations in the HD DVD vs. Blu-ray format war have been pretty clearly defined for nearly two years now — despite a hybrid player here and some international releases there, most of the players involved have not switched support since the early days. Well that’s all about to change, as Paramount Pictures and Dreamworks Animation — which started off HD DVD only before deciding to go both ways — have officially announced plans to release movies exclusively on HD DVD, dropping Blu-ray support entirely. This means that hits like Transformers, Shrek the Third and Blades of Glory won’t follow Mission: Impossible III as cross-format releases when they debut this holiday season. Paramount has released about 30 movies on Blu-ray so far, but those days have come to an end: apparently cheaper HD players trump a 2:1 sales advantage. We can’t wait to see how the Blu-ray camp responds to this.

Update:  they got paid off.