Indiantelevision.com's > Digital Edge > Toshiba gives in to Sony, plans to unplug HD DVD

Indiantelevision.com's Digital Edge

Toshiba gives in to Sony, plans to unplug HD DVD

Indiantelevision.com Team

(18 February 2008 9:00 pm)

MUMBAI: The intense format war between Sony Corporation's Blu-ray and Toshiba's HD DVD seems to be coming to a head. Reports have it that Toshiba may abandon the HD DVD format, surrendering to rival Sony's Blu-ray.

Although Japanese broadcasting network NHK says that Toshiba will lose "hundreds of millions of dollars" following its decision to pull the plug, investors have welcomed Toshiba's decision to cut its losses. Moreover, some analysts maintain that "the potential losses are small compared to the savings."

Toshiba shares jumped 5.7 per cent on Monday after it was reported on Sunday that it would concede defeat to the rival Blu-ray format.

This comes on the heels of Wal-Mart's decision to join the league of Blockbuster, Netflix and Best Buy and exclusively sell Sony's Blu-ray across its 4,000 outlets. It is also in the air that the supermarket giant was already aware of Toshiba's plans to withdraw from the fight.

Toshiba had agreements with Hollywood studios including Universal Pictures, Paramount Pictures and DreamWorks Animation SKG, Inc to support HD-DVD.

Although the better picture quality and bigger capacity of next-gen DVDs and players were expected to help revitalise the $24 billion global home DVD market, having two DVD formats has stifled sales of both.

This victory for Blu-ray can be seen as sweet revenge for Sony, whose Betamax lost out in a similar duel in the early 1980s to Panasonic's VHS to set the standard for videocassettes.