Thread: Toshiba says it may end HD DVD

Toshiba says it may end HD DVD
By YURI KAGEYAMA, AP Business Writer
2 hours, 9 minutes ago

TOKYO - Toshiba may pull the plug on its high-definition DVD format but no decision has been made, the Japanese electronics maker said in a statement Monday.

Toshiba Corp. has started a review of its HD DVD business, it said, amid reports by the Wall Street Journal and Kyodo News agency that Toshiba was considering pulling out after losing ground to the competing Blu-ray disc format.

The Journal, citing people familiar with the situation, reported Sunday that the company is likely to pull out early this week. A Toshiba pullout would signal the almost certain defeat of HD DVD to Blu-ray, which is backed by Sony Corp., five major Hollywood movie studios and others.

Only one format has been expected to emerge as the winner, much like VHS trumped Sony's Betamax in the video format battle of the 1980s.

Recently the Blu-ray disc format has been gaining market share, while Toshiba has been forced to slash prices to sell its HD DVD machines.

On Friday, Wal-Mart Stores Inc., the largest U.S. retailer, said it will sell only Blu-ray DVDs and hardware and no longer carry HD DVD offerings.

The announcement came five days after Netflix Inc. said it will cease carrying rentals in HD DVD. Several major U.S. retailers have made similar decisions, including Target Corp. and Blockbuster Inc.

Last month, Warner Bros. Entertainment decided to release movie discs only in the Blu-ray format, becoming the latest studio to reject HD DVD.

Warner Bros., owned by Time Warner Inc., had been the only remaining Hollywood studio releasing high-definition DVDs in both formats.

Should Toshiba exit the business, companies supporting its HD DVD format — including General Electric Co.'s Universal Pictures and Viacom Inc.'s Paramount Pictures — would be released from their contracts, the Journal reported.

Both formats deliver crisp, clear high-definition pictures and sound, but they are incompatible with each other, and neither plays on older DVD players.

HD DVD was touted as being cheaper because it was more similar to previous video technology, while Blu-ray boasted bigger recording capacity than HD DVD.

http://news.yahoo.com/s/ap/20080218/...wP70_Lpt5v24cA

Microsoft says end of HD DVD won't hurt Xbox 360
Mon Feb 18, 3:53 PM ET

SAN FRANCISCO (Reuters) - Microsoft Corp does not expect sales of its Xbox 360 game console to suffer if Toshiba Corp discontinues HD DVD technology, Microsoft said in a statement on Monday.

"We do not believe the recent reports about HD DVD will have any material impact on the Xbox 360 platform or our position in the marketplace," the company said. "We will wait until we hear from Toshiba before announcing any specific plans around the Xbox 360 HD DVD player."

Xbox 360 supports a plug-in HD DVD accessory that allows customers to view high definition DVDs produced only with this Toshiba technology.

Toshiba sources said on Saturday that the company is preparing to exit the HD DVD business, thereby surrendering a two-year battle to control the format of next-generation DVDs.

Customers would be left to buy high-definition DVDs produced with Blu-ray, an alternate technology controlled by Sony Corp.

The Microsoft statement pledged that Xbox 360 customers would continue to be able to consume high-definition movies, television programs, and DVDs they already own.

In January, a Microsoft executive said the company would be open to supporting Blu-Ray technology for its Xbox 360 machine.

http://news.yahoo.com/s/nm/20080218/...RFrpm0eKZH2ocA