The high-definition DVD format war is over. The New York Times declared HD-DVD dead on Saturday after Wal-mart announced it would carry only Blu-Ray once its current stock of HD-DVD products is sold. This morning, Toshiba, who developed HD-DVD, announced that Toshiba will cease production of HD-DVD equipment, and terminate all HD-DVD operastions by the end of March.
Though the latest development is a huge setback, Mr. Nishida said Toshiba was still committed to electronics and it planned to rethink its vision for the business. In a hint of the direction the company might take, he said Toshiba might think about its role in the online video-downloading market more seriously. Toshiba has no plans to start selling Blu-ray players, he said.
[...]
Though HD DVD's defeat will clear up much of the confusion over high-definition DVDs among consumers, analysts say consumer electronics makers will now have to convince consumers that the crisper images on Blu-ray players are worth upgrading to. And companies like Sony and Matsushita Electric Industrial Co., the maker of Panasonic products, which had joined together to fight HD DVD will now be competing in earnest with each other.
Emphasis on the last sentence mine. Watch for a serious price war on Blu-Ray players and recorders, coming soon to electronics stores near you.
This is bad for Toshiba, but good for consumers. Blu-Ray was clearly the superior format from the very start; many of the design decisions in HD-DVD were driven by the desire for the cheapest possible switchover from SD to HD disc mastering and pressing, rather than any actual technical superiority.
(WSJ article is restricted; full text appears below)
( "Toshiba Exits HD DVD Business, Ceding Market to Sony's Blu-ray" )