Last month's news that movie rental chain Blockbuster had plumped for films on Blu-ray (as used in Sony’s PlayStation 3) was a worrying sign for supporters of the rival HD-DVD format (as used in Microsoft’s Xbox 360). Now, Reuters reports that US retailer Target has announced that, from this October, it will only be selling Blu-ray disc players. Unsurprisingly, it was a gloating Sony that gleefully broke the news of Target’s plans.

Yesterday, Microsoft slashed $20 (£10) off the price of the Xbox 360’s HD-DVD add-on, and threw in a few free movies to boot, but losing the support of major retailers such as Target doesn’t bode well for the format.

However, whether HD-DVD is on the canvas for good, vision blurred and bloodied knees all over the place, is another question entirely. It’s still just about soldiering on if you ask us, but we sense this Holiday season could be crucial. One thing is certain, though: this is rapidly becoming Blu-ray’s race to lose.