Well, looks like Toshiba's saying NOT SO FAST ... at least until tomorrow! The company issued a statement on Monday indicating that they've not made any decisions about HD-DVD, but acknowledge that they will "review" their HD-DVD strategy.

http://www.videobusiness.com/article/CA6533132.html

Bill Hunt of The Digital Bits is saying that Toshiba is basically reviewing three options right now:

Additional reporting in the Japanese media suggests that Toshiba management is considering three options this week: 1) Continue selling HD-DVD players but stop manufacturing recorders, 2) Abandon the U.S. and Japanese markets and concentrate on Europe, and 3) Pull the plug on HD-DVD completely in all markets. Multiple industry sources are now telling The Bits that the third option is almost certainly the one Toshiba will take in order to cut their losses. An official press conference is expected likely within a week.
Another interesting bit reported by Ars Technica is that Toshiba was already planning to exit the HD-DVD market before the Netflix and Wal-Mart announcements. The only hang up now seems to be how to clear out any remaining inventory as gracefully as possible.

Surprisingly, our source tells us that exit plans for HD DVD were already in the works before the Netflix announcement this past week. The loss of Warner Brothers demoralized the HD DVD camp, and when it was clear that deep price cuts weren't going to give HD DVD a second wind, the writing was on the wall. The only question, pre-Netflix announcement, was how to gracefully shutdown while liquidating existing product. Now that retailers and rental joints have turned their back publicly on the format, there's nothing graceful about the shutdown plans. There's little face to save on the consumer side.

What's more, our source says that Netflix and Wal-Mart were aware of HD DVD's impending official death, and rather than allow a long and drawn out withdrawal from the market that could burn customers, those companies chose to broadcast their intentions to the marketplace immediately. This puts pressure on Toshiba and its partners to exit the business without spending months trying to unload product that's essentially already obsolete.