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According to the Nihon Keizai Shimbun, Sony and Toshiba are making steps towards creating a single next-generation format, rather than subjecting consumers to a format war between Blu-Ray and HD DVD. Sony (behind Blu-Ray) had the following to say:

In order to offer users with a nicer environment, we are continuing talks with various companies concerning next-generation formats like. However, because of the influence next-generation formats have throughout the industry, we current cannot comment about company names, contents of the talks, or their circumstances.

And Toshiba (behind HD DVD):

We cannot clarify any details yet. There is the viewpoint that having a single format is better for users. Nothing concrete has been decided.

Sony and Toshiba, first step towards "next-generation format integration"? [AV Watch]