In a major move for Sanyo, they are cutting 14,000 employees as part of a 3-year restructuring plan. Part of that plan is to exit the DVD player, DVD recorder, and VCR markets to focus on the development and promotion of HD-DVD hardware. It still plans to manufacture parts for Blu-ray hardware, though.

CDRinfo - Sanyo to Exit From DVD players, Focuses on HD DVD

The two top Chinese manufacturers, Amoi Electronics and Sichuan Changhong Electric, have voiced support for the HD-DVD format. This is a crucial win for Toshiba because Chinese manufacturers are largely responsible for the low DVD player prices we see today (and hence Sanyo’s leaving the market). This announcement will surely mean that HD-DVD players will come down in cost quickly.

CDRinfo - Major Chinese DVD player Manufacturers to Support HD-DVD