It's the first time a Hollywood studio has committed to both formats, suggesting that support for HD DVD is weakening. According to reports in the movie trade press, Warner is likely to follow suit in the next few days. Paramount says Sony's decision to base PS3 on Blu-ray has been a key factor.

In the home video market,  59% of publishers plan to release films on Blu-ray, while 45% are backing HD DVD (source: Variety). The overlap is due to studios that are hedging, and backing both formats.

Paramount had previously been seen as a rock-solid supporter of HD DVD, and the move is widely seen as a boon for Blu-ray. Paramount's president of home video Thomas Lesinski said, "We have been intrigued by the broad support of Blu-ray, especially the key advantage of including Blu-ray in PlayStation 3. After more detailed assessment and new data on cost, manufacturability and copy protection solutions, we have now made the decision to move ahead with the Blu-ray format. We believe the unique portfolio of Viacom content coupled with this format will provide great benefit for consumers and our shareholders alike."

Sony's Blu-ray format is up against Toshiba's HD DVD in a war that can only be damaging for publishers of next generation DVD content. While PS3 will play Blu-ray DVDs, it's not yet known whether Xbox 360 will fully back HD DVD in the same way.

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