Looming end seen in DVD format war

• IBTimes RSS
• Print
• E-Mail
• digg
• Del.icio.us

Shares in Toshiba Corp, which a company source said was planning to axe its HD DVD format, jumped nearly 6 percent as analysts praised a move to cut its losses, while Sony Corp shares rose 1 percent.

The Blu-ray win means consumers seeking sharper movies on high-definition DVDs no longer have to choose between rival incompatible formats and run the risk of being stuck with a 21st century equivalent of Betamax - Sony's videotape technology that lost out to VHS in the 1980s.

Having one format should also help accelerate the shift to the new technology in the $24 billion (12.3 billion pound) home DVD market.

"It doesn't make sense for Toshiba to continue putting effort into this," said Koichi Ogawa, a chief portfolio manager at Daiwa SB Investments. "It needs to cut its losses and focus its resources on promising businesses."

Both DVDs can carry high-definition movies, but growing support from Hollywood and big U.S. retailers such as Wal-Mart Stores has given Blu-ray a crushing lead in the war.

Overall sales have so far been small as shoppers, faced with rival machines that played only one type of disc or the other, have held back.

"I was expecting Blu-ray to win but I was kind of waiting it out," said Masahiro Taniwaki, a 26-year-old systems engineer shopping for a Blu-ray recorder at electronics retailer Bic Camera in Tokyo.

Toshiba said on Monday that no decisions had been made on HD DVD, but widespread media reports said the company that has led the HD DVD fight was about to surrender.

"The two formats, though both were good, have confused consumers and prevented them from moving into the high-def future," said Stephanie Prange, editor in chief of Home Media Magazine.

• 1
• 2
• 3