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That's what I understand as well. That the title mentioned above will be HD DVD only. The studios don't have any contractual agreements that require them to release in any format if they have been supporting both. They could choose not to release in one format at will. So I would assume that if they feel they are saving money by ceasing any production on the other format then that's what they will do. I don't think there is any contractual obligation to release on Blu-Ray despite the timing of this announcement.
Also, the reason I am still torn is because from a movie standpoint I am more interested in HD DVD. However, I also have 2 young kids and a wife that are clearly Disney freaks and many of the movies and cartoons they want are clear in the Blu-Ray Camp. So, for me it's either get a standalone player for each or get a dual format player. So I am opting for a dual format player at this time.
I love Disney as well, but you know, when you put Toy story in an HD DVD drive that upconverts, my two year old really doesn't complain very much. My philosophy is this. HD DVD got me because of the price. They have a large library of content, and for the Blu-Ray exclusives I just buy the standard DVD if I need to have it. The only Blu-Ray exclusive I ever thought to buy was Rocky Balboa and believe me I don't lose sleep over not owning it. If Warner pulls Blu-ray support, it could mean death for the PS3 and maybe Sony as a company.
I already have most of the Disney movies on DVD. I won't be rebuying most of them to upgrade to Bluray. My children don't care all that much. The only ones that I will probably upgrade will be the Pixar ones.