As Blu-Ray wages war on Toshiba’s trailing HD DVD, rumors are circulating that the manufacturer is planning to pull the plug on the project.

Sources for the Hollywood Reporter have hinted that Toshiba will soon drop its production of the HD DVD disc following a loss of both studio and retail support. Following Blu-Ray sales taking 93 percent of the total high-definition hardware sales in December, Toshiba drastically slashed prices of HD DVD players only to take 28 percent of the hardware market and 18 percent of the movie market in January. The combination of manufacturing losses and a lack of sales may have finally convinced Toshiba to surrender to Sony.

Jodi Sally, Vice President of Marketing for Toshiba America Consumer Products, stands behind the format. “Based on its technological advancements, we continue to believe HD DVD is the best format for consumers, given the value and consistent quality inherent in our player offerings.”

Still, she didn’t deny that Toshiba is examining the consumers’ response to the high-definition war. “Given the market developments in the past month, Toshiba will continue to study the market impact and the value proposition for consumers, particularly in light of our recent price reductions on all HD DVD players.”

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