Did we already see the end of HD-DVD?

[Objectivity]

A few weeks ago, there was a lot of confusion about Sony selling its cell processor facilities to Toshiba. There was a lot of talk about it here, but I don't recall this thought being discussed.

Sony and Toshiba (and IBM?) worked together to create the cell processor. That processor is used in Sony architecture, mostly the PS3 at this point, but more down the line is likely. I think the long term goal is that various objects in a house with the processor network together to be more than the sum of their parts.

Regardless, while working together on the cell, Toshiba and Sony are at odds over hi-def formats. It's clear that the war is dragging on and even though there's an end in sight, it's costing both companies money because consumers aren't fully behind either product.

Did Sony reach out to Toshiba and make it an offer? For example, "We'll sell you our portion of the cell processor (and agree to keep using it for xx years) if you agree to abandon HD-DVD."

Toshiba would win because it gets a revenue stream that isn't going to eventually die; Sony wins because Blu-Ray loses its only competition. Also, Sony still gets royalties from cell as a co-creator.

To avoid any appearance of backlash for Toshiba, its part of the agreement - to stop supporting HD-DVD and making players - is put off for a set amount of time (say six months).

Does this scenario seem likely, or even plausible? It seems like a good end around; if Universal won't go independent on its own, it will have to if no major company is making the players for its movies any more.