Toshiba says it's considering ending HD DVD, but no decision made

THE ASSOCIATED PRESS
TOKYO - Toshiba may pull the plug on its HD DVD next-generation video format, the Japanese electronics maker said Monday.

Tokyo-based Toshiba Corp. said in a statement that no decision has been made, but acknowledged it had started a review of its HD DVD business strategy. The comment came after weekend Japanese media reports, including in Kyodo News, that the company is studying a possible withdrawal from HD DVD.

HD DVD has been competing against Blu-ray technology, backed by Sony Corp., Matsushita Electric Industrial Co., which makes Panasonic brand products, five major Hollywood movie studios and others.

A Toshiba pullout would signal the almost certain defeat of HD DVD by Blu-ray.

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, especially in Japan, where studies showed more than 80 per cent of the purchases were Blu-ray.

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.

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.

© The Canadian Press, 2008