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Toshiba finally decides to dump DVD format

The decision ends a war between rival consortiums led by Toshiba and Sony vying to set the standard HD movies on DVDs, and which has stalled a shift to the new technology in the $33.9 billion home DVD market.

Wed, Feb 20, 2008
Reuters

TOKYO, JAPAN: Japan's Toshiba Corp has given up on its high-definition DVD format after losing the support of key studios and retailers to Blu-ray technology backed by Sony.

The decision ends a war between rival consortiums led by Toshiba and Sony vying to set the standard HD movies on DVDs, and which has stalled a shift to the new technology in the US$24 billion ($33.9 billion) home DVD market.

The Blu-ray win means consumers no longer have to choose between rival incompatible formats and run the risk of being stuck with a 21st-century equivalent of Betamax, Sony's videotape technology that lost out to VHS in the 1980s.

However, while they will get better audio and picture quality - and they will likely wait for DVD player prices to halve - consumers will probably have to upgrade their television sets to make the most of them.

Toshiba said it would start reducing shipments of HD DVD players and recorders and aim to close the business by the end of next month.

The company said it would continue to provide service for all owners of HD DVD products, and that it was still calculating
how much shutting down the business would impact its earnings.

The tide turned against HD DVD after the defection last month by Time Warner's Warner Bros studio to Blu-ray. - REUTERS

 
 
 
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