Sony takes lead in HD-DVD war

Toshiba is set to concede victory to Sony in the battle for control of the next generation of high-definition DVDs.

Following last week's announcement by Wal-Mart, the world's largest retailer, that it would stock the Blu-ray format backed by Sony exclusively, Toshiba is expected to announce imminently that it will no longer invest in its own HD-DVD format.

Both camps have been battling it out for the last two years in a so-called "format war" that was reminiscent of the VHS vs Betamax struggle over home video standards in the 1980s and had hampered sales.

The writing has been on the wall for HD-DVD since the beginning of January when Warner Bros, one of the world's largest film studios, announced exclusive support for its rival.

"This has been a long overdue end to the format war that has frustrated and confused consumers, and will allow vendors to focus resources on the Blu-ray technology," said Claudio Checchia, an analyst with research firm IDC. "I would expect a more aggressive push towards Blu-ray in the second half [ of 2008], resulting in more movie content, more standalone DVD players, and prices for these players falling to attractive levels by Christmas."

Consumers have largely avoided investing in either technology as the giants of electronics industry battled it out to see who would dominate. Other than those included in games consoles, the cheapest next generation DVD players have retailed for about €500 in Irish shops. Analysts expect that, with the industry now focusing on a single format, prices will drop.

"This is a classic battle of two great formats, both offering excellent high-definition viewing," said a spokesman for DSG International, which trades in Ireland under the Currys, Dixons and PC World brands and sells both technologies.

"Our commitment is to our customers rather than a particular format and we await with interest the outcome of which format proves more popular."

Members of the Blu-ray Disc Association include Apple, Dell, HP, LG Electronics, Samsung, Philips and Matsushita. - (Additional reporting Reuters)