It looks like Sony and Paramount are going to be
scaling back
production of UMD movies due to their higher cost to manufacture and
the low sales they've generated so far. I can't say this is too
surprising as given the choice people are more likely to buy the DVD of
something and rip the content to a memory stick that they can play on
their PSP rather than buying two copies of something. It does
look like they are considering bundling UMD and DVD releases together
for a slightly higher price which sounds like a step in the right
direction.