No sooner do I have a conversation with some friends this past weekend about how I think the Blu-ray camp has now made the right moves (namely the Blockbuster and Target deals) to be able to win the Blu-ray/HD-DVD war, does HD-DVD come swinging back as Viacom has decided to drop Blu-ray support for both Paramount and (most) Dreamworks films. This war is now uglier than ever.

I say “most” Dreamworks films because interestingly enough the exclusive deal does not include any film directed by Steve Spielberg; I assume these will continue to be released on both formats. I find this very interesting, and I definitely see it as a sign that the biggest director in the world is not completely sold on HD-DVD.

These new exclusive Paramount/Dreamworks HD-DVDs are going to start rolling out next week and will in the coming months include the likes of blockbusters such as Transformers and Shrek 3 – both potential player-sellers depending on the demographic.

As I see it, as a consumer this really annoys me – basically the studios are getting together and saying you’re going to need two different expensive players in the future if you want to watch your favorite movies.

I have two words that are looking nicer everyday: Movie Downloads.