The Reuters information is currently being further explained by Universal Home Entertainment. Universal would like to clearly point out Target will continue to carry the Xbox 360 HD-DVD drive and movies, they also say that Target is still currently selling HD-DVD players. Well, yes, because it's not October yet.
Universal has a right to feel defensive. Target's declaration probably shouldn't be taken too lightly -- although, when Wal-Mart declares Blu-ray, it's all over. So, even with the HD-DVD attachment price drop for your Xbox 360, plus five movies, is it worth getting? Umm, might want to put that money aside for now. It's a nice $179 dent in the cost of the PS3, which comes with Blu-ray playback built in. The holiday season is approaching and that'll be a pretty big indicator of what's to come. The last thing any consumer wants is to have an expensive machine which plays a dying format.
Update: Added Universal statement info to story.