One thing that is certain in the next-Gen DVD war is that it’s not over until it’s over. Just as it was looking as if Blu-ray was getting the upper hand, it has been dealt a blow.

Out of the blue, Paramount and DreamWorks Animation have both announced that they are moving exclusively to use HD-DVD in favour of the Blu-ray format which they were using.

There’s one exception though - Steven Spielberg films which will still be put out on both formats.

"The combination of Paramount and DreamWorks Animation brings a critical mass of current box office hits to consumers with a line-up of live action and animated films that are perfect for HD-DVD”, Brad Grey, chairman and CEO of Paramount Pictures.

“Part of our vision is to aggressively extend our movies beyond the theatre, and deliver the quality and features that appeal to our audience. I believe HD-DVD is not only the affordable high quality choice for consumers, but also the smart choice for Paramount."

Jeffrey Katzenberg, Dream Works Animation CEO, also spoke out saying, "We decided to release "Shrek the Third" and other DreamWorks Animation titles exclusively on HD-DVD because we believe it is the best format to bring high quality home entertainment to a key segment of our audience - families.

“We believe the combination of this year's low- priced HD-DVD players and the commitment to release a significant number of hit titles in the fall makes HD-DVD the best way to view movies at home."