Dreamworks Squirming out of its exclusive HD-DVD contract

Dreamworks who, among other things, produces the Shrek films, signed an exclusive HD-DVD contract at the same time as its parent company Paramount. While the latter has announced its move back to BluRay, Dreamworks seems unable to opt out so easily.
Pending discussions and an agreement with Toshiba, it will sever its contract, and abandon HD-DVD films. Given the already low share of HD-DVD media sales, the commercial impact would be relatively small. However, their image is damaged and the door is left open to competitors, meanwhile the security (or lack therof) of partnering with Paramont/Dreamworks will be another casualty of the format war.