Paramount To Drop HD-DVD?

It was barely 5 months ago When Paramount pledged to back HD-DVD exclusively, now they are about to drop it. The deal was said to involve cash incentive of $150 million, Paramount ditched the Blue for Red with 18 months contract. Can they break the allegiance now to side with Blu-ray instead? The Financial Times said there's a condition in the contract that would allowed Paramount to back off the deal in the events that if Warner Bros is endorsing the Blu-ray. They aren't sure if the same get-out clause apply to DreamWorks animation but seemed certain with Paramount. "Paramount is poised to drop its support of HD DVD after Warner Brothers' recent backing of Sony's Blu-ray technology," If Warner move hasn't change the outcome of the format war, this might just do it.

Paramount in HD DVD blow [via The Financial Times]