It was only a matter of time until the bug guys over at Microsoft decided to go along with Toshiba and every other company out there to stop production of HD DVD items. Microsoft just issued this statement today.

As a result of recent decisions made by Toshiba, Hollywood studios, and retailers, Microsoft plans to withdraw from HD DVD.  Xbox will no longer manufacture new HD DVD players for the Xbox 360, but we will continue to provide standard product and warranty support for all Xbox 360 HD DVD Players in the market.  As we stated earlier, we do not believe this decision will have any material impact on the Xbox 360 platform or our position in the marketplace. 

HD DVD is one of the several ways we offer a high definition experience to consumers and we will continue to give consumers the choice to enjoy digital distribution of high definition movies and TV shows directly to their living room, along with playback of the DVD movies they already own.

Blu-Ray wins. Horray! Now give me The Kingdom on Blu-Ray please. Thank you...