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NOW for rumor number 2... Paramount dumping HD DVD because Warners did. Not True. I generally consider THE FINANCIAL TIMES above such rumor mongering, but it seems some folks are eagerly advancing the complete and total obliteration of the HD DVD format. We're hearing rumors like Paramount dropping the format (NOT TRUE) as well as rumors that Sony paid Warners through the nose, because they fear that Disney and Fox may leave them (Also not true). There's rumors aplenty - I just wanted to settle these two HUGE rumors going around the net today.
Screwface wrote:I dont think HD-DVD is dead..people are so drastic.
The Aftereffects of HD DVD's Death
The ripples of Toshiba's decision to pull out of the high-definition DVD format war are still fresh just one day after the vendor declared the death of HD DVD.
Toshiba Tuesday put an end to weeks of speculation by telling the world it will stop making HD DVD products by the end of March, bringing an end to the high-def DVD format war. With Sony's Blu-ray now taking its victory lap, the path is clear for tentative consumers to plunk down cash for high-def gear. Here's a quick round-up of some of the immediate impacts.
Toshiba quits HD DVD business wrote:Toshiba quits HD DVD business
Decision hands victory in DVD format battle to Sony-backed Blu-ray technology.
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February 19 2008: 4:36 AM EST
TOKYO (AP) -- 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.
"We concluded that a swift decision would be best," Toshiba President Atsutoshi Nishida told reporters at his company's Tokyo offices.
The move would make Blu-ray - backed by Sony Corp (SNE)., Matsushita Electric Industrial Co., which makes Panasonic brand products, and five major Hollywood movie studios - the winner in the battle over high-definition DVD formatting that began several years ago.
Nishida said last month's decision by Warner Bros. Entertainment to release movie discs only in the Blu-ray format made the move inevitable.
"That had tremendous impact," he said. "If we had continued, that would have created problems for consumers, and we simply had no chance to win."
Warner joined Sony Pictures, Walt Disney Co (DIS, Fortune 500). and News Corp.'s (NWS, Fortune 500) Twentieth Century Fox in that move.
Nishida said his company had confidence in HD DVD as a technology and tried to assure the estimated 1 million people, including some 600,000 people in North America, who already bought HD DVD machines by promising that Toshiba will continue to provide product support for the technology.
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 (DWA).
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 $370 million to $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 (WMT, Fortune 500)., 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. (NFLX) said it will cease carrying rentals in HD DVD.
Several major American retailers had already made similar decisions, including Target Corp. (TGT, Fortune 500) and Blockbuster Inc (BBI, Fortune 500).
Also adding to Blu-ray's momentum was the gradual increase in sales of Sony's PlayStation 3 home video-game console, which also works as a Blu-ray player. Sony has sold 10.5 million PS3 machines worldwide since the machine went on sale late 2006.
HD DVD supporters included Microsoft Corp (MSFT, Fortune 500)., Intel Corp (INTC, Fortune 500). and Japanese electronics maker NEC Corp.
Microsoft's Xbox 360 game machine can play HD DVD movies, but the drive had to be bought separately, and Nishida said about 300,000 people have those.
Worldwide sales of personal computers with HD DVD drives total about 300,000 worldwide, including 140,000 in North America and 130,000 in Europe, he said.
Recently, the Blu-ray disc format has been gaining market share, especially in Japan. A study on fourth quarter sales last year by market researcher BCN Inc. found that by unit volume, Blu-ray made up 96 percent of Japanese sales.
Sony said it did not have numbers on how many Blu-ray players had been sold globally.
Toshiba's stock slipped 0.6% Tuesday to 824 yen after jumping 5.7% Monday amid reports that a decision was imminent. Sony shares climbed 2.2% to 5,010 yen after rising 1% Monday.
Also Tuesday, Toshiba said it plans to spend more than $15.7 billion for two plants in Japan to produce sophisticated chips called NAND flash memory, which are used in portable music players and cell phones. Production there will start in 2010.
Soothing the Wounds
Consumers that took the plunge early into HD DVD are left wondering if what they've got now is a $150 doorstop. The answer, it seems, is no. Customers are taking solace in the fact that many HD DVD players will "upconvert" standard DVDs, improving the playback quality of standard DVDs on high-def TVs. Plus, there are still plenty of HD DVD movies out there, which will likely be had for discounted prices. But for some customers, that's just not reason enough to hang onto the thing. Which brings us too ...
spudthedestroyer wrote:i don't think i'll ever buy a bluray player, its console owners that have pushed the new format which I just don't think has worked out well for the general consumer.
spudthedestroyer wrote:Hopefully these formats will die out very fast, something like a cheap flash NAND card would destroy optical media. There's a lot of companies trying to churn these out.
Gem]n[ wrote:spudthedestroyer wrote:i don't think i'll ever buy a bluray player, its console owners that have pushed the new format which I just don't think has worked out well for the general consumer.
I completely agree with you there Spud ...spudthedestroyer wrote:Hopefully these formats will die out very fast, something like a cheap flash NAND card would destroy optical media. There's a lot of companies trying to churn these out.
Now I've been saying this for years ...
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