LOS ANGELES – Paramount Pictures and DreamWorks Animation SKG Inc. will offer next-generation DVDs in the HD DVD format and drop support for Blu-ray, further complicating the race between the competing technologies.

Monday’s announcement affects the upcoming DVD releases of the blockbusters “Shrek the Third” and “Transformers,” along with movies distributed by Paramount Pictures, DreamWorks Pictures, Paramount Vantage, Nickelodeon Movies and MTV Films.

Movies directed by Steven Spielberg, however, will continue to be released in both formats.

Paramount, which owns DreamWorks Pictures and handles home sales for the separate company DreamWorks Animation, previously released movies in both Blu-ray and HD DVD.

“Part of our vision is to aggressively extend our movies beyond the theater, and deliver the quality and features that appeal to our audience,” said Brad Grey, chairman and CEO of Paramount Pictures, a unit of Viacom Inc.

“I believe HD DVD is not only the affordable high-quality choice for consumers, but also the smart choice for Paramount,” he said.

The competition between Blu-ray and HD DVD has kept confused consumers from rushing to buy new DVD players until they can determine which format will dominate the market.

Until recently, many consumers were able to defer the choice because players have been so expensive. But prices have been slashed by about half – Sony Corp.’s Blu-ray player now sells for $499, and Toshiba Corp.’s cheapest HD DVD player sells for $299.

Sony Corp.’s Sony Pictures, News Corp.’s Twentieth Century Fox, The Walt Disney Co., and Metro-Goldwyn-Mayer are releasing only in Blu-ray.