Although nothing has been officially confirmed yet, there is much speculation that consumer electronics giant Toshiba will drop its HD DVD format, meaning that Sony’s Blu-ray will come out the winner in the HD video player format war.

HD DVD was dealt a severe blow recently when Warner Bros announced it would no longer support the format. Previously the world’s largest retailer, Wal-Mart, announced that it would sell only hardware and DVDs formatted to Sony’s Blu-ray technology.

Vnunet.com reports that DVD sales have been affected by the format war because consumers are unsure which format to choose.

Up until this time Toshiba has reportedly been selling its HD DVD players for far less than their manufacturing cost.