We expected this announcement based on rumors earlier this week, and it seems pretty official now. Warner Brothers indicated that it will likely release high-def DVDs in both HD-DVD and Blu-Ray formats. At this point, all of the fences and barriers between the two camps appear to be falling, simply because the major studios aren't picking a clear winner.
Smaller players have two options here: play both sides like the big boys or place a bet one format and cross your fingers. If the hardware manufacturers can't play nice here, at least the studios are making the situation a little rosier for the consumer. Can you imagine wanting to buy a DVD movie and the first question you have to ask is, "which studio put that out?"