Update: Paramount released a statement today saying that their "current plan is to continue to support the HD DVD format". Good news we say, although the the whole "current plan" wording doesn't put us at complete ease.

HD DVD is getting its metaphorical bum whipped lately and things do not look to be getting any brighter.

The Financial Times has cooked up the latest HD DVD versus Blu-ray rumor and are claiming that Paramount may be close to announcing that they're going Blu-ray exclusive and abandon their multi-million dollar partnership with the HD DVD camp. The rumor is based on sources close to Paramount's deal with Toshiba saying that there is a clause in the contract that allows Paramount to back Blu-ray in the event Warner Bros. goes blu. And wouldn't you know, last week Warner did just that. If Paramount were to jump to Blu-ray then Sony would have a massive choke hold on the HD format war further pushing their movie studio support higher than their current 70% rate. The other question mark in the equation is Dreamworks who are best buds with Paramount and are said to have a similar contract with Toshiba. Oh well, there's always Universal. They got HD DVD's back ... don't they?

[Via Gizmodo, Thanks DjDATZ]

This article was originally published on Joystiq.