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Patience, HD video fans. Those of you hoping that the defeat of HD DVD would usher in a new era of lower-priced Blu-ray players will have to wait at least until the next calendar year.

In comments made to reporters at a New York press gathering Wednesday morning, Sony Electronics President Stan Glasgow said, "I don't think $200 is going to happen this year. Next year $200 could happen. We'll be at a $300 rate this year; $299 will happen this year," according to Gizmodo.

There's been quite a bit of media discussion over whether or not Sony and other Blu-ray supporters will start cutting prices on standalone players in the aftermath of HD DVD's death. Seeing as how the answer is "no" from Sony for now, that decreases the likelihood that Blu-ray will make major inroads with mainstream consumers, as a plurality cite price as the biggest barrier to their purchase of an HD video player.

At the same event, Glasgow also dished on other Sony-related news:

• Even in the face of a downturn in the U.S. economy, Glasgow says Sony's electronics sales are still going swimmingly. He said the company expects to sell 5 million Blu-ray players by the end of 2008. The company unveiled two new models last week.

• Sony has no plans to make digital converter boxes for next year's digital TV switchover, and will leave that to the lower-tier CE companies.

Glasgow will be in San Francisco to chat up West Coast reporters Wednesday night. Check back here for updates and additional comments from him.

Peace in our time

They're all born with the best of intentions, but only the strong survive.

Formats come and go. Some are barely noticed, and some die a slow, painful death. So now we can all breathe a sigh of relief that the format war between Blu-ray and HD DVD was comparatively brief--unless you're on the losing side, stuck with a slowpoke player and a collection of HD DVD discs. I've already heard from some angry HD DVD supporters. War is tough.

If you're over 35, you probably remember the Betamax vs. VHS wars, which raged from 1975 to the late 1980s, when Sony finally surrendered and started marketing VHS machines.

Like the HD DVD-Blu-ray debacle, manufacturers divided into two camps: Beta had Sony, Toshiba, Sanyo, NEC, Aiwa, and Pioneer. An impressive lineup, but JVC, Matsushita (Panasonic), Hitachi, Mitsubishi, Sharp, and Akai sided with VHS. Even when everyone said Beta was dead as a doornail in the early 1990s (long before the introduction of DVD), the format soldiered on in Japan until 2002.

Pioneer still makes Laserdisc players like this DVL-919

(Credit: Pioneer Electronics)

Some formats wither and die on their own--the Laserdisc wasn't competing against anything but a lack of interest. The LD was a 12-inch optical analog disc alternative to Beta and VHS. It looked like an LP-size CD. Yes, it was a better, higher-quality format than tape, and it still garnered only a small yet fanatical market base among videophiles.

The LD fared better than RCA's crippled-from-the-start CED (Capacitance Electronic Disc) that came out in 1981. Marketed as "SelectaVision," the grooved, LP-like discs were fragile, and they never stood a chance against VHS tape. Still, RCA stuck to its guns for five long years before snuffing the CED in 1986. Ten years later, the Laserdisc was on its last legs when the DVD finally killed it off--the software, that is. Pioneer still sells new DVD-LD players. How's that for customer support?

DVD was unchallenged but for a brief skirmish with Divx (Digital Video Express, not to be confused with DivX). Divx was a DVD rental variant, but cheaper (a disc sold for about $5) and could be viewed only for 48 hours after its first use. Divx players could play DVDs, but standard DVD players couldn't play Divx discs. Disney, Twentieth Century Fox Film, and Paramount Pictures released their movies in the Divx format.

The Audiophiliac poses with an 8-track cartridge.

(Credit: Steve Guttenberg)

Audio has had its own share of format wars, but it also had some remarkably stable formats. The LP has been around for 50-plus years, and you can still play the oldest LPs on a brand-new turntable.

It's starting to look like the LP will outlast the CD. But CDs are a long-running success and likewise universally playable, and most surviving cassettes are serviceable.

Analog tape formats like reel-to-reel, 8-track, and 4-track cartridges still have tiny outposts of devout followers, but the Elcaset came and went so fast, I never even heard it. Digital-tape formats like DAT and the Digital Compact Cassette (DCC) barely made a dent in the public's awareness.

So how will the HD DVD fare in the format history time line? What do you think: a mere blip or an interesting diversion?

We have a winner.

Well, that's it. Toshiba appears to be pulling the plug on HD DVD. Toshiba has not commented publicly, but a report on Japan's NHK says Toshiba has made the decision to withdraw from next generation high-definition DVD production.

This news certainly doesn't come as surprise to anyone remotely following HD DVD's format war with rival Blu-ray. HD DVD had suffered a string of defections, with Warner, Netflix, Best Buy, and Wal-Mart all recently pledging their alliance to Blu-ray.

The NHK report says existing HD DVD products will remain on the market for a while, but Toshiba will stop further development of HD DVD. The report also estimates that Toshiba will take a hit to the tune of "hundreds of millions of U.S. dollars" and will close factories in northern Japan.

Elsewhere this weekend, Sony and its Blu-ray buddies are going to make like VHS and party like it's 1989.

Source | Via

UPDATE: Reuters now points to an unnamed company source who says, yep, we're done. An official announcement from Toshiba could come next week.

Already starting the week off on a bad note, HD DVD's day just keeps getting worse.

Starting next month Best Buy says it will prominently display Blu-ray players and discs in its stores and recommend the format over rival HD DVD, according to a Reuters report.

"Because we believe that Blu-ray is fast emerging as that single format, we have decided to focus on Blu-ray products," Brian Dunn, Best Buy's president and chief operating officer, said in a statement Monday.

It's not an exclusive arrangement since Best Buy says it will still continue to offer HD DVD. But having Best Buy's valuable endorsement in the form of Sunday circulars, front-and-center store kiosks, and staff recommendation seems to be the icing on the cake for a Blu-ray victory in the format war, and potentially the death rattle for HD DVD.

Earlier Monday, online movie rental service Netflix announced it would phase out its offering of HD DVD discs by the end of the year. Netflix's position likely will have less of an immediate impact on the format battle since its business depends on people who have already made a decision on which format they support. In other words, Netflix availability isn't the reason most consumers will lay down $400 for a video player.

But Best Buy is different. It's the nation's largest consumer electronics store, and in a situation where consumer education is one of the biggest battles, much of the actual fighting of the format war needs to be won at the sales level. When someone looking to upgrade to HD video goes in to a store and asks their friendly sales associate which format they recommend, the answer is going to have a serious impact.

Update, 4 PM PT: The HD DVD Promotional Group responded with a statement that's strikingly similar to the one issued earlier in the day: "We have long held the belief that HD DVD is the best format for consumers based on quality and value, and with more than 1 million HD DVD players on the market, it's unfortunate to see Netflix make the decision to only stock Blu-ray titles going forward. While the Best Buy announcement says they will recommend Blu-ray, at least they will continue to carry HD DVD and offer consumers a choice at retail."

If Warner Bros.' decision to go exclusively with Blu-ray Disc was an industry-rattling earthquake, Monday's news that Netflix would begin to phase out HD DVD rentals is an inevitable aftershock: much smaller impact, potentially damaging, and still leaves everyone feeling unsettled.

By the end of the year Netflix will no longer offer HD DVD movies to customers, opting to exclusively stock Blu-ray Discs in its online rental service. In the company's announcement, Netflix said it made the decision based on Blu-ray's recent momentum--Universal and Paramount are the only remaining major Hollywood studios with agreements to release titles exclusively on HD DVD.

For HD DVD backers like Toshiba, Microsoft, and the studios, Netflix is probably yet another sad loss, but it won't have the demoralizing repercussions the Warner decision did.

But for the average consumer, in reality, not much changes. That's because the overwhelming majority of DVD renters don't rent high-definition discs. In fact, most of Netflix's own customers don't rent high-def discs. But those who did were renting Blu-ray more than HD DVD, hence Netflix's decision.

Sure, Netflix is one less place to rent HD DVD, but finding copies of the beleaguered disc format is not impossible--Blockbuster stores don't offer HD DVDs to rent, but its online rental service still stocks both formats.

In all, the announcement doesn't do much to make the muddled format picture any less murky for consumers right now. High-definition video players and discs are still too pricey for most buyers, and the quality improvement over DVD isn't as apparent to anyone but the hardcore videophile crowd. Plus, standard DVD players that can convert discs to high-def resolution get the job done reasonably well. Until any of that changes, high-definition video will be stuck in neutral no matter which studio or rental service makes an offer of exclusivity.

Update: The HD DVD Promotional Group's response: "We have long held the belief that HD DVD is the best format for consumers based on quality and value, and with more than 1 million HD DVD players on the market, it's unfortunate to see Netflix make the decision to only stock Blu-ray titles going forward."

For further discussion, hear the guys at CNET's The 404 talk about it on Monday's podcast.

(Credit: The Digital Bits)

When Warner Bros. announced it was becoming a Blu-ray exclusive studio, most observers of the format war agreed that it was a mortal wound for HD DVD. The only remaining question was, how long is HD DVD going to last? Well, according to the latest NPD data (as compiled by Bill Hunt at The Digital Bits), not very long. During the week of January 5 to 12--the first week the market had to respond to the Warner announcement--Blu-ray absolutely trounced HD DVD in hardware sales, grabbing 92.53 percent of the high-def disc-player market. That's pretty ugly for the HD DVD camp, but it only gets worse. The most damning aspect of these numbers is that they do not include the PlayStation 3 or Xbox 360 HD DVD add-on drive--only standalone players. We previously thought HD DVD's only road to victory was by selling tons of cheap standalone HD DVD players, so the fact that relatively expensive Blu-ray players are starting to sell makes it seem like this format war has been officially declared over--by the consumers.

Of course, Toshiba slashed prices on its HD DVD players just a few days after this data ends... Read more

Warner to HD DVD: That's all, folks.

(Credit: www.referenceforbusiness.com)

The big buzz today around CNET offices in New York is the news that Warner Bros. Entertainment has decided to stop making HD DVD discs and will become a Blu-ray-only studio at the end of May. Needless to say, this is a major blow to the HD DVD camp, which earlier this year struck a deal with Paramount to go HD DVD exclusive. You could say this is a tit-for-tat move by Sony and the Blu-ray camp, but it's actually more of a clubbing because Warner has a much bigger library of movies than Paramount.

While rumors of Warner potentially dumping HD DVD have been circulating for the past few months, the timing of the announcement right before the start of the Consumer Electronics Show seems designed to inflict maximum damage to Toshiba's planned HD DVD push at the show. With lower prices on its standalone players and the Paramount deal, Toshiba and HD DVD backers such as Microsoft appeared to be gaining some momentum in the format war. But now the company is faced with a PR nightmare. (An HD DVD event is scheduled for Sunday in Las Vegas; it should be interesting). No one knows at this point what it took for Warner to say sayonara to HD DVD, but you can bet it involved a truckload of something.

Does this spell the end for HD DVD? If I had to give a yes or no answer, I'd have to say yeah, it's probably curtains. The fact is, with the lack of studio support, it's very hard to recommend to readers to buy an HD DVD player, even if it is half the price of a Blu-ray machine. All that said, things have looked bleak for Toshiba and HD DVD before and they've managed to scrap their way back into contention, so you never know. Feel free to weigh in after you read the full press release from Warner, which I've posted below via The Digital Bits:

WARNER BROS. ENTERTAINMENT TO RELEASE ITS HIGH-DEFINITION DVD TITLES EXCLUSIVELY IN THE BLU-RAY DISC FORMAT BEGINNING LATER THIS YEAR

Decision made in response to strong consumer preference for format

(January 4, 2008 - Burbank, CA) - In response to consumer demand, Warner Bros. Entertainment will release its high-definition DVD titles exclusively in the Blu-ray disc format beginning later this year, it was announced today by Barry Meyer, Chairman & CEO, Warner Bros. and Kevin Tsujihara, President, Warner Bros. Home Entertainment Group.

"Warner Bros.' move to exclusively release in the Blu-ray disc format is a strategic decision focused on the long term and the most direct way to give consumers what they want," said Meyer. "The window of opportunity for high-definition DVD could be missed if format confusion continues to linger. We believe that exclusively distributing in Blu-ray will further the potential for mass market success and ultimately benefit retailers, producers, and most importantly, consumers."

Warner Home Video will continue to release its titles in standard DVD format and Blu-ray. After a short window following their standard DVD and Blu-ray releases, all new titles will continue to be released in HD DVD until the end of May 2008.

"Warner Bros. has produced in both high-definition formats in an effort to provide consumer choice, foster mainstream adoption and drive down hardware prices," said Jeff Bewkes, President and Chief Executive Officer, Time Warner Inc., the parent company of Warner Bros. Entertainment. "Today's decision by Warner Bros. to distribute in a single format comes at the right time and is the best decision both for consumers and Time Warner."

"A two-format landscape has led to consumer confusion and indifference toward high definition, which has kept the technology from reaching mass adoption and becoming the important revenue stream that it can be for the industry," said Tsujihara. "Consumers have clearly chosen Blu-ray, and we believe that recognizing this preference is the right step in making this great home entertainment experience accessible to the widest possible audience. Warner Bros. has worked very closely with the Toshiba Corporation in promoting high definition media and we have enormous respect for their efforts. We look forward to working with them on other projects in the future."

What do you think? Is there any hope for HD DVD? Should Toshiba and Microsoft continue fighting or make a deal?

Anyone who's ever visited AVS Forum--probably the largest online forum for audio/visual discussion--knows that people can get carried away. And anyone who has dared to venture in the HD DVD and Blu-ray forum is well aware of rampant fanboy flame wars--the kind that used to be reserved for game consoles.

Well apparently a couple of the AV geeks have gone too far, which has led to AVS Forum moderators to completely shut down the HD DVD and Blu-ray forums until the end of the week. And in case you think it's an overreaction, check out this quote from the letter they posted to AVS members:

We have seen members attacking other members not only in debate, which is the right way, but with physical threats that have involved police and possible legal action.

Wow. ... Read more

(Credit: Wal-Mart)

Earlier this week it was big news that HD DVD broke the $200 price barrier. Well, in the same week it looks like HD DVD has broken the $100 price barrier as well. As previously reported, Wal-Mart is running a "Secret In-Store Specials" sale this Friday and one of the heavily discounted items is the Toshiba HD-A2 selling for $98.87. Of course, this isn't a true price drop, as the sale is only good as long quantities last and the Toshiba HD-A2 won't be available at all Wal-Mart locations. On the other hand, it is representative of HD DVD's significant advantage in hardware pricing -- the least expensive Blu-ray player is the $400 PlayStation 3, which also hits stores tomorrow.

The $99 price tag is sweet, but the deal is even better than that. Toshiba continues to give away five free movies to anyone that buys an HD DVD player--all you need to do is fill out this form (PDF link) and mail it in. If you're not thrilled about Toshiba's selection of free movies (we're not either), Wal-Mart is also running on a sale on HD DVD movies tomorrow, priced at $14.96 each. That's a pretty significant discount, as most of the HD DVDs we saw at Amazon were priced from $20 to $30.