Toshiba Ditches HD DVD Format, Hands Victory to Sony
TOKYO — Toshiba said Tuesday it will no longer develop, make or market HD DVD players and recorders, handing a victory to rival Blu-ray Disc technology in the format battle for next-generation video.
[...]
Both HD DVD and Blu-ray deliver crisp, clear high-definition pictures and sound, which are more detailed and vivid than existing video technology. They are incompatible with each other, and neither plays on older DVD players. But both formats play on high-definition TVs.
HD DVD was touted as being cheaper because it was more similar to previous video technology, while Blu-ray boasted bigger recording capacity.
Only one video format has been expected to emerge as the victor, much like VHS trumped Sony's Betamax in the video format battle of the 1980s.
Nishida said it was still uncertain what will happen with the Hollywood studios that signed to produce HD DVD movies, including Universal Studios, Paramount Pictures and DreamWorks Animation.
Toshiba's pulling the plug on the technology is expected to reduce the number of new high-definition movies that people will be able to watch on HD DVD machines.
Toshiba Corp. said shipments of HD DVD machines to retailers will be reduced and will stop by end of March.
Sales in Blu-ray gadgets are now likely to pick up as consumers had held off in investing in the latest recorders and players because they didn't know which format would emerge dominant.
Despite being a possible blow to Toshiba's pride, the exit will probably lessen the potential damage in losses in HD DVD operations. Goldman Sachs has said pulling out would improve Toshiba's profitability between 40 billion yen and 50 billion yen ($370 million-$460 million) a year.
The reasons behind Blu-ray's triumph over HD DVD are complex, as marketing, management maneuvers and other factors are believed to have played into the shift to Blu-ray's favor that became more decisive during the critical holiday shopping season.
Once the balance starts tilting in favor of one in a format battle, then the domination tends to grow and become final, said Kazuharu Miura, an analyst at Daiwa Institute of Research in Tokyo.
"The trend became decisive I think this year," he said. "When Warner made its decision, it was basically over."
With movie studios increasingly lining up behind Blu-ray, retailers also began to stock more Blu-ray products.
Friday's decision by Wal-Mart Stores Inc., the largest U.S. retailer, to sell only Blu-ray DVDs and hardware appeared to deal a final blow to the Toshiba format.
Just five days earlier, Netflix Inc. said it will cease carrying rentals in HD DVD.
Several major American retailers had already made similar decisions, including Target Corp. and Blockbuster Inc. [...]
I don't know which technology is superior, all things considered. Blu-ray has more storage capacity. Perhaps the High Definition quality is equally good, I hope so. I know there had been a lot of talk about how the porn industry was going in be a big deciding factor as to which format would win, in the same way they were in the 1980's when they favored VHS over Beta-Max.
More on that from MacWorld:
Porn industry may be decider in Blu-ray, HD-DVD battle
[...] “If you look at the VHS vs. Beta standards, you see the much higher-quality standard dying because of [the porn industry’s support of VHS],” he said. “The mass volume of tapes in the porn market at the time went out on VHS.”
E! Entertainment is using Blu-Ray discs primarily for Sony’s XDCam applications for acquisition of television programming materials. The television network, which has more than 85 million subscribers to its celebrity gossip and entertainment news, said it is not considering optical formats for long-term data archiving, but will stick with magnetic tape for now.
The pornography industry, which generates an estimated US$57 billion in annual revenue worldwide, has always been a fast leader when it comes to the use of new technology, according to analysts.
Porn studio Digital Playground, which claims to have produced the largest number of high definition movies in the industry over the past three years, said it is choosing Blu-ray Disc for all of its “interactive” films because of its greater capacity. It also selected Blue-ray because Sony chose the format for its PlayStation 3 (PS3) box, due out in November.
The co-founder of Los Angeles-based Digital Playground, who goes by the one-word name “Joone,” said the fact that Sony chose Blu-ray guarantees his studio an instant home audience.
“PlayStation 3 is going to be the Trojan horse that will get a lot of numbers into the home theater systems — the living rooms,” said Joone, who is also a movie director. “Technology-wise we’ve chosen Blu-ray, which doesn’t mean we won’t support both formats … but as far as having really cool technology and a lot of storage for future proof, Blu-ray is a good format.”
Blu-ray Disc and HD-DVD are the new optical-disc formats that are positioned as replacements for DVDs with high-definition content.
Blu-ray is not only backed by entertainment giant Sony, but Panasonic, LG Electronics, Philips Electronics and movie studios Disney and Fox. Blu-ray offers storage up to 50GB capacity, or up to nine hours of high-definition content. In contrast, HD-DVD has 30GB capacity and is supported by companies like Toshiba, NEC and Warner Home Video.
Paul O’Donovan, an analyst with Gartner Inc., said pornography’s support of either DVD format will be a “strong factor” to the uptake of the technology by the general marketplace, but even more critical is Sony’s adoption of the technology.
O’Donovan said even though initially the Blu-ray format will be more expensive and will come after that of HD-DVD, the sheer support it is receiving from the entertainment industry, including pornography studios, will catapult it to a victory within a range of 18 months to five years. [...]
This article was published in May of 2006. 21 months later, Blue-Ray wins. Quite a good guess on their part.
For better or worse, it's Blue-Ray now. At least the format war is settled, and there is now a format that everyone can build around, which should also bring prices down eventually. It's probably all for the best.
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