http://www.news.com/8301-10784_3-987...g=2547-1_3-0-5
Toshiba has not commented publicly about it yet, but, "a report on Japan's NHK says Toshiba has made the decision to withdraw from next generation high-definition DVD production."
With HD-DVD losing support from Warner recently, losing Netflix, Wal-Mart, and several other outlets, as well as the latest sales figures showing an ever increasing gap between HD-DVD and Blu-Ray, this doesn't come as much of a surprise, although it has not been confirmed by Toshiba directly yet.
I personally haven't purchased any HD-DVDs since getting my player for the 360, just have King Kong which came with it, and waiting on my 5 free movies from the rebate. Maybe as this plays out the current releases will drop in price.