Los Angeles - Movie studios Paramount Pictures, a unit of Viacom, and DreamWorks Animation announced on Monday that they will now exclusively release their high-definition movies on HD DVD, abandoning support for Sony's rival Blu-ray format.

The companies said the decision "resulted from an extensive evaluation of current market offerings, which confirmed the clear benefits of HD DVD, particularly its market-ready technology and lower manufacturing costs."

"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," said DreamWorks Animation CEO Jeffrey Katzenberg.

The move further complicates things for consumers, as Warner Bros. becomes the only remaining studio to offer titles on both Blu-ray and HD DVD.

If consumers wish to watch "Shrek the Third," "Spider-Man 3" and "The Bourne Ultimatum" at home in high-definition, they will be forced to choose one player or the other.

Currently, Blu-ray discs have an advantage in terms of sales; the format also benefited from Blockbuster's recent announcement that it would exclusively stock Blu-ray titles.

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http://news.yahoo.com/s/nm/20070820/tc_nm/studios_hddvd_dc_3 (Reuters)