Toshiba will discontinue its HD DVD products, it said Tuesday, handing victory to rival high definition disc format Blu-ray Disc.
The company will no longer develop, manufacture and market HD DVD players and recorders.
It will reduce shipments of HD DVD players and recorders to retail markets and aims to cease the businesses altogether by the end of March.
But the Japanese electronics giant pledged to provide full product support and after-sales service for owners of Toshiba HD DVD products.
Recent changes in the market prompted the decision, Toshiba said. Early this year, Warner Bros. said it would stop issuing movies on HD DVD in the coming months and rely exclusively on Blu-ray Disc. The Hollywood studio was one of three major studios remaining in the HD DVD camp, and its defection created widespread belief that the battle between HD DVD and Blu-ray Disc was now over.
More recently, major U.S. retail chain Wal-Mart announced it would phase out the sale of HD DVD products, moving to exclusivity with Blu-ray Disc. Electronics retailer Best Buy also said it would back Blu-ray Disc, but it did not say it would stop offering HD DVD.
Warner made its decision based on consumer confusion and indifference to high definition movies, an indifference that cost Hollywood in lost revenue, it said. Wal-Mart said U.S. customers preferred Blu-ray Disc movies and hardware. Blu-ray Disc is the high definition disc format championed by Sony.
"This once again shows why incompatible and mutually exclusive formats should be avoided at all cost by the industry," said Carl Gressum, a senior analyst at Ovum. "It reduces profitability and delays customer adoption."
"The big question is, however, the impacts on Toshiba as an electronics company," he added. "It has after all bet its disc media business on HD DVD, as well as gone for HD DVD integration into some of its laptop PCs. The channel has inventory to clear, and demands from owners of HD DVD players."
Toshiba said its decision came after careful analysis of the long-term impact of continuing the format war, and said a swift decision was called for to help the high definition market develop.
The company also pledged to remain a player in the high definition market. Developing HD DVD created many assets for Toshiba and its partners, which include Microsoft, Intel, HP, and Universal Studios, the company said. Toshiba plans to work with these companies to seek future business opportunities."
Has Microsoft been considering a Blu ray add-on for the Xbox 360 all along? According to Jeff Bell, Microsoft’s head of marketing, yes.
In what has become a popular debate in the vein of “Will they or won’t they”, Jeff Bell confirmed that Microsoft has been in talks with the Blu ray association for sometime now regarding an add-on for the Xbox 360. The idea of a Blu ray add-on, similar to the current HD DVD add-on, first emerged when Peter Moore made mention of it prior to last year’s E3 conference.
"We've been talking to Blu ray all along because we have the best piece of software in the business, called HDi. It is the backbone that powers interactivity in HD-DVD and we have that available to potentially partner with others," Jeff Bell told 1UP.
"You never say never. I think we'd like to see how things evolve. Our commitment, however, to HD-DVD is profound and consistent, and we have done very, very well in term of our accessory sales."
While HD DVD still has major support from Universal, Paramount, and Dreamworks; the recent move by Warner Bros to go exclusively Blu ray later this year has changed the entire game plan for many directly involved in the next-gen movie format debate.
Bell also pointed out that it shouldn’t be seen as too crazy a concept for MS to support Blu ray. Sony’s Vaio line of computers all use Windows software. Fanboys often forget that these companies are out to make money and will partner with whoever it takes to make that money. It’s not about fanboys. It’s about business. If a Blu ray player could sell as an add-on for the Xbox 360. Everyone wins. "
HD-DVD is dead is not something to woot about. since sony is noe the only company making high def DVD's now it has no one to comepete with and prices for blue-ray and blue-ray players will go up