The new year hasn't exactly been kind to HD-DVD. Toshiba's next-generation format began 2008 with a pre-CES pull out by Warner Bros. Since then, things have gone from bad to worse, most recently with news that Netflix, BestBuy, and Wal-Mart have opted to go strictly with Sony's Blu-Ray when it comes to next generation discs.

Toshiba made things official this morning, by throwing in the hi-def towel, stating that they would no longer manufacture, develop, or market HD-DVD hardware. In the meantime, the company is set to reduce shipments of players and recorders, ceasing the wing of their business entirely by the end of next month.

However, the company insists that they will continue to provide support for those who have purchased their now discontinued hardware.

"We carefully assessed the long term impact of continuing the so-called 'next-generation format war' and concluded that a swift decision will best help the market develop," said Toshiba's CEO, Atsutoshi Nishida in a statement issued this morning.

Adding, "while we are disappointed for the company and more importantly, for the consumer, the real mass market opportunity for high definition content remains untapped and Toshiba is both able and determined to use our talent, technology and intellectual property to make digital convergence a reality."

Toshiba will continue to focus on the more profitable sectors of their business. Sony, for their part, will likely continue to gloat for a while.