rhysb: Actually Toshiba are denying the rumour. It appears to have been started by an over enthusiastic Blu-Ray supporter.
http://www.betanews.com/article/Toshiba_denies_rumors_HD_DVD_not_dead_yet/1203352277
I think it's all over bar the shouting and that should come some time this week. Investors have made it clear with a stock price increase of 5% that they are happy Toshiba is pulling out of the battle. Ironically Sony only rose 1%.