Blu-ray the victor in next generation DVD war

[ouiwey]

he high definition disc format wars could be over after reports revealed that the main backer of HD DVD, Toshiba, is preparing to fall on its sword.

A Toshiba source, speaking to Reuters, confirmed earlier reports that the company was planning to concede defeat as early as this month.

Earlier, a report by Japanese public broadcaster NHK said Toshiba would soon discontinue all HD DVD production and close factories in Japan. It estimated the move would cost Toshiba hundreds of millions of US dollars.
It follows a series of defections to the Blu-ray camp by major US retailers, which came on the back of already disappointing sales and movie studio support for HD DVD.

"We have entered the final stage of planning to make our exit from the next generation DVD business," the Toshiba source said.

Toshiba has so far declined to comment on the reports.

In the US, Wal-Mart, Best Buy and Netflix recently announced they would cut their support for HD DVD and exclusively stock Blu-ray discs.

The decision by the retailers came closely behind January's announcement by Warner Bros. that it would drop HD DVD to focus solely on Blu-ray.

Paramount and Universal are now the only major studios still supporting HD DVD. Comment is being sought from both, but Universal recently reiterated its support for HD DVD by announcing it would release 20 new movies on the format in Australia this year.

Wal-Mart's move will be especially damaging for the HD DVD camp because its stores sell four out of every 10 video discs in the US.

Responding to the reports on HD DVD's apparent demise, JB Hi-Fi spokesman Scott Browning said all talk was so far speculative but "it would be very surprising if they [the HD DVD camp] made that announcement that quick".

Paul Uniacke, managing director of the Franchise Entertainment Group, which owns Video Ezy and Blockbuster in Australia, said HD DVD exiting the market would be "a good thing" as there would be less confusion among consumers.

In December last year, Uniacke said the HD DVD camp was "missing the boat" and not taking the Australia market seriously enough.

Around the world and particularly in Australia, consumers have generally steered clear of both formats due to uncertainty around which would be victorious. The comparable Betamax-VHS battle of the 1980s, which left Betamax early-adopters with obsolete hardware, appears to have had a lasting impact.

Even so, Blu-ray has eclipsed HD DVD in sales in Australia since the launch of the formats, despite aggressive price cuts from the HD DVD side.

http://www.smh.com.au/news/articles/...190700636.html