High definition optical disc format war

The high definition optical disc format war was a format war between the Blu-ray Disc and HD DVD optical disc standards for storing high definition video and audio. These standards emerged between 2000 and 2002 and attracted both the mutual and exclusive support of major consumer electronics manufacturers, personal computer manufacturers, television and movie producers and distributors, and software developers. In early 2008, a tipping point of studios and distributors shifted to Blu-ray disc. On February 19, 2008, Toshiba officially announced that it would stop the development of the HD DVD players, conceding the format war to the Blu-ray Disc format.cite news|url=http://www.toshiba.co.jp/about/press/2008_02/pr1903.htm |title=Toshiba Announces Discontinuation of HD DVD Businesses |date=February 19, 2008 |publisher=Toshiba]

Background

The format war between Blu-ray and HD DVD had antecedents trailing back to the early 20th century, including conflicts between Thomas Edison's cylinder records and Emile Berliner's disc records for audio recordings, EP vs. LP vinyl records, 8-track vs. compact cassette, and AM stereo vs. FM stereo. More recent conflicts include flash memory cards (CompactFlash, Memory Stick, Secure Digital card, Smart Media), and Hi-fi digital audio (DVD-Audio vs. SACD), as well as recordable DVD formats (DVD+R vs. DVD-R). The videotape format war between VHS and BetaMax resembled the Blu-ray/HD DVD conflict because of Sony's strong involvement with both. These format wars have often proved destructive to both camps because consumers, afraid of committing to a losing standard, will refrain from purchasing either. [cite journal|last=Dranove |first=David |coauthors=Neil Gandal |title=Surviving a Standards War: Lessons Learned from the Life and Death of DIVX |publisher=Idea Group Inc.] Format wars have been avoided in notable cases like the DVD Forum for unified DVD standard, the Grand Alliance for the HDTV standard, and the Wi-Fi Alliance for wireless internet standards.

The emergence of high definition players followed the entry of HDTV televisions into the mainstream market in the mid-1990s. Consumer-grade high definition players required an inexpensive storage medium capable of holding the larger amount of data needed for HD video. [cite web |url=http://online.wsj.com/article/SB891992681208651500.html?mod=googlewsj |title= In HDTV Age, Successor to VCR Still Seems to Be a Long Way Off |accessdate=2007-10-18 |author=Evan Ramstad |date=1998-04-08 |work=online.wsj.com] The breakthrough came with Shuji Nakamura's invention of the blue laser diode, whose shorter wave length opened the door to higher density optical media following a six year patent dispute. [cite web |url=http://www.pcworld.com/article/id,103862-page,1/article.html |title=Opening the Door for New Storage Options |accessdate=2007-10-18 |author=Martyn Williams |date=2002-08-12 |work=pcworld.com |publisher=]

Sony started two projects applying the new diodes: Ultra Density Optical and, with Pioneer, DVR Blue. [cite web |url=http://www.planetanalog.com/features/OEG20010615S0046 |title=Blue laser bolsters DTV storage, features |accessdate=2007-10-19 |author=S.B. Luitjens |date=2001-06-15 |work=planetanalog.com |publisher=] The first DVR Blue prototypes were unveiled at the CEATEC exhibition in October 2000. In February 2002, the project was officially announced as Blu-ray, [ cite web |url = http://www.newscientist.com/article/dn1952.html |title = Replacement for DVD unveiled |accessdate = 2007-10-17 |author = Barry Fox |date=2002-02-19 |work = newscientist.com ] and the Blu-ray Disc Association was founded by a consortium of nine electronics companies.

The DVD Forum, chaired by Toshiba, was deeply split over whether to go with the more expensive blue lasers, which initially required a protective caddy to avoid mis-handling, making the medium more expensive and physically different from DVDs. [cite news |url=http://news.bbc.co.uk/2/hi/entertainment/1829241.stm |title=Next Generation DVD Born |accessdate=2007-11-04 |date=2002-02-21 |work=bbc.co.uk] In March 2002, the forum voted to approve a proposal endorsed by Warner Bros. and other motion picture studios that involved compressing HD content onto dual-layer DVD-9 discs. [cite web |url=http://www.eetimes.com/story/OEG20020301S0091 |title=Picture's fuzzy for DVD |accessdate=2007-10-19 |author=Junko Yoshida |date=2002-03-01 |work=eetimes.com] [cite web |url=http://www.eetimes.com/story/OEG20011212S0060 |title=Forum to weigh Microsoft's Corona as DVD encoder |accessdate=2007-10-19 |author=Junko Yoshida |date=2001-12-12 |work=eetimes.com |publisher=] In spite of this decision, the DVD Forum's Steering Committee announced in April that it was pursuing its own blue-laser high-definition solution. In August, Toshiba and NEC announced their competing standard Advanced Optical Disc, [cite web |url=http://www.pcworld.com/article/id,104570-page,1/article.html |title=Toshiba, NEC Share Details of Blue-Laser Storage |accessdate=2007-10-18 |author= |date=2002-08-29 |work=pcworld.com] which was finally adopted by the DVD Forum and renamed "HD DVD" the following year [cite web |url=http://www.theinquirer.net/en/inquirer/news/2003/11/28/dvd-forum-backs-toshiba-nec-format |title=DVD Forum backs Toshiba-NEC format |accessdate=2007-10-18 |author= |date=2003-11-28 |work=theinquirer.net |publisher=] after being voted down twice by Blu-ray Disc Association members, prompting the U.S. Department of Justice to make preliminary investigations. [cite web|url=http://www.videobusiness.com/article/CA6458096.html|title=Opinion: Trust's worth] [cite web|url=http://www.videobusiness.com/article/CA6258560.html?q=DVD+Forum+Blu%2Dray|title=Lieberfarb lobs charges at Blu-ray] Three new members had to be invited and the voting rules changed before the initiative finally passed. [cite web |url=http://www.my-esm.com/story/OEG20031114S0024 |title=High-definition DVD format divides industry into rival camps |accessdate=2007-10-19 |author=Junko Yoshida and Yoshiko Hara |date=2003-11-14 |work=my-esm.com] [cite web |url=http://www.techweb.com/wire/story/TWB20031126S0005 |title=HD DVD Format Wins Key Nod From DVD Forum |accessdate=2007-10-19 |author=Yoshiko Hara |date=2003-11-26 |work=techweb.com]

The competing standards had significant differences that made each incompatible with the other.

Attempts to avoid a format war

In an attempt to avoid a costly format war, the Blu-ray Disc Association and DVD Forum started to negotiate a compromise in early 2005. One of the issues was that Blu-ray's supporters wanted to use a Java-based platform for interactivity (BD-J), while the DVD Forum was promoting Microsoft's "iHD" (which became HDi). [cite web |url=http://www.eetasia.com/ART_8800364355_499495_f3313299.HTM |title=Sides close to deal on HD disk format |accessdate=2007-10-19 |author=Junko Yoshida |date=2005-04-19 |work=eetasia.com |publisher=] A much larger issue, though, was the physical formats of the discs themselves; the Blu-ray Disc Association's member companies did not want to risk losing billions of dollars in royalties as they had done with standard DVD.cite web |url=http://www.internetnews.com/storage/article.php/3671091 |title=Who Is Drawing Out The High-Def DVD Stalemate? |accessdate=2007-10-19 |author=Andy Patrizio |date=2007-04-12 |work=internetnews.com |publisher=] An agreement seemed close, but negotiations proceeded slowly. [cite web |url=http://www.ft.com/cms/s/0/8e6df286-c670-11d9-b69b-00000e2511c8.html |title=Sony-Toshiba DVD format talks stall |accessdate=2007-10-19 |author=Michiyo Nakamoto |date=2005-05-17 |work=ft.com |publisher=]

At the end of June 2005, Sun announced that the Blu-ray Association had chosen the Java-based BD-J interactivity layer instead of Microsoft's HDi. This was based on a BDA board vote favouring BD-J 10 to 4, despite a technical committee previously favouring HDi by a vote of 7 to 5. [cite web|url=http://www.videobusiness.com/article/CA6281492.html|title=Micro-managed copies] At the same time, Microsoft and Toshiba jointly announced that they would cooperate in developing high-definition DVD players. [cite web |url=http://www.wired.com/techbiz/media/news/2005/06/68009 |title=Microsoft, Toshiba Gear Up |accessdate=2007-10-19 |author=David Cohn |date=2005-06-27 |work=wired.com |publisher=] In a top-level meeting in July, Microsoft's Bill Gates argued that the Blu-ray standard had to change to "work more smoothly with personal computers". The Blu-ray Disc's representatives defended the technology.cite web |url=http://www.businessweek.com/magazine/content/05_42/b3955113.htm |title=Daggers Drawn Over DVDs |accessdate=2007-10-19 |author=Cliff Edwards, Peter Burrows, Ronald Grover, Tom Lowry and Kenji Hall |date=2005-10-17 |work=businessweek.com |publisher=]

On August 22 2005, the Blu-ray Disc Association and DVD Forum announced that the negotiations to unify their standards had failed. [cite web |url=http://www.forbes.com/home/feeds/afx/2005/08/22/afx2188394.html |title=Sony, Toshiba fail to unify DVD format - report |accessdate=2007-10-19 |author= |date=2005-08-22 |work=forbes.com |publisher=] Rumors surfaced that talks had stalled; publicly, the same reasons of physical format incompatibility were cited. In the end of September, Microsoft and Intel jointly announced their support for HD DVD. [cite web |url=http://www.ecommercetimes.com/story/n6BNgaGjf2Pdrz/Microsoft-Intel-Back-Toshibas-HD-DVD.xhtml |title=Microsoft, Intel Back Toshiba's HD-DVD |accessdate=2007-10-19 |author=Susan B. Shor |date=2005-09-27 |work=ecommercetimes.com |publisher=]

Hewlett Packard (HP) made a last ditch attempt to broker a peace between the Blu-ray Disc Association and Microsoft. HP proposed that the Blu-ray association adopt Microsoft's HDi, instead of a Java based solution, and that Blu-ray adopt a mandatory managed copy feature. If their demands weren't met, HP threatened to support HD DVD instead. [cite web |url=http://www.vnunet.com/vnunet/news/2144325/hp-calls-changes-blu-ray |title=HP calls for changes to Blu-ray |accessdate=2007-10-19 |author=Ken Young |date=2005-10-20 |work=vnunet.com] In a research report, Gartner analysts Van Baker, Laura Behrens and Mike McGuire wrote that if HP's proposal were accepted, Blu-ray would become the winner of the format war. [cite web |url=http://www.vnunet.com/vnunet/news/2144595/hp-blu-ray-move-spells-doom-hd |title=HP's Blu-ray move spells doom for HD-DVD |accessdate=2007-10-19 |author=Robert Jaques |date=2005-10-25 |work=vnunet.com] Though the Blu-ray Disc group did add mandatory managed copy to Blu-ray they did not add HDi. [cite news |url=http://www.foxnews.com/story/0,2933,175904,00.html |title=Blu-ray Won't Bow to HP's Demands |accessdate=2007-10-19 |date=2005-11-17 |work=foxnews.com]

HD DVD players and movies were released in the United States on April 18 2006, [cite web|url=http://www.videobusiness.com/article/CA6324750.html|title=HD DVD set to launch quietly| accessdate=2007-04-09|date=2006-04-13|last=Netherby|first=Jennifer|coauthors=Susanne Ault|work=Video Business] The first Blu-ray Disc titles were released on June 20 2006 and the first movies using dual layer discs Blu-ray (50 GB) were introduced in October 2006. [ cite web
url = http://bluray.highdefdigest.com/click.html
title = Click: Blu-ray Disc review
accessdate = 2007-09-15
date=2006-10-10
last = Bracke
first = Peter M.
work = HighDefDigest.com]

Alliances

The Blu-ray Disc Association was started by Hitachi, LG, Panasonic, Pioneer, Philips, Samsung, Sharp, Sony, and Thomson in 2002-02-19. [cite web
url = http://www.sony.net/SonyInfo/News/Press_Archive/200202/02-0219E/
title = Large Capacity Optical Disc Video Recording Format "Blu-ray Disc" Established
publisher=SONY Press Release
date=2002-02-19
accessdate = 2007-08-31] Other early supporters included Dell, HP, Mitsubishi and TDK. [cite web|url=http://www.tdk.co.jp/teaah01/aah13400.htm|title=Blu-ray Disc Founders Open the Door for Blu-ray Disc Association To Welcome New Members]

The comparable HD DVD Promotion Group included Toshiba, NEC, Sanyo, Microsoft, RCA, Kenwood, Intel, [http://www.venturer.com Venturer Electronics] and Memory-Tech Corporation, with non-exclusive support by Acer, Asus, HP, Hitachi Maxell, LG, Lite-On, Onkyo, Meridian, Samsung, [cite web|url= http://www.theinquirer.net/default.aspx?article=38952|title=Blu-ray Samsung backs HD DVD - Foot in both camps (16 April 2007)] and Alpine. In Europe, HD DVD was supported either exclusively or non-exclusively by Medusa Home Entertainment, Studio Canal, Universum Films, Kinowelt Home Entertainment, DVD International, Opus Arte, MK2, Momentum Pictures, Twister Home Video, among others.Fact|date=February 2008

During the height of the format war, some studios supported both formats, including Paramount Pictures (including subsidiaries Nickelodeon Movies, MTV Films, DreamWorks Pictures and DreamWorks Animation), BBC, [cite web|url=http://www.tgdaily.com/content/view/35662/98/|title=BBC says it will still support both high-def formats] First Look Studios, [cite web|url= http://www.highdefdigest.com/tags/show/First_Look|title=First Look Brings 'King of California,' 'Amateur' to HD DVD; Adds Blu-ray Support] Image Entertainment (including the Discovery Channel), [cite web|url=http://www.highdefdigest.com/news/show/Disc_Announcements/Discovery_Channel/TV_on_DVD/Discovery_Channel_Brings_Atlas_to_Blu-ray,_HD_DVD/261|title=Discovery Channel Brings 'Atlas' to Blu-ray, HD DVD] Magnolia Pictures, [cite web|url=http://www.highdefdigest.com/news/show/Disc_Announcements/Magnolia/Psst!_Magnolia_Jumps_Into_Blu-ray_with_Bubble/265| title=Psst! Magnolia Jumps Into Blu-ray with 'Bubble'] Brentwood Home Video, Ryko, and Koch/Goldhil Entertainment, [cite web|url=http://bluray.highdefdigest.com/news/show/Koch/Disc_Announcements/Chronos_HD_DVD_Gets_New_Distributor_Blu-ray_Version_on_the_Way/374|title='Chronos' HD DVD Gets New Distributor; Blu-ray Version on the Way] respectively.

Deciding factors

The format war's resolution in favor of Blu-ray was primarily decided by two factors: shifting business alliances, including decisions by major film studios and retail distributors, [cite news | first=Yuri | last=Kageyama | coauthors= | title=Toshiba quits HD DVD business | date=2008-02-19 | publisher= | url =http://goldderbyforums.latimes.com/eve/forums/a/tpc/f/5626090474/m/446106051 | work =Associated Press | pages = | accessdate = 2008-03-25 | language = ] and Sony's decision to include a Blu-ray player in the PlayStation 3 video game console.

tudio, distributor alliances

Studio alliances shifted over time. Before October 2005 and the release of either format, each had the exclusive support of three of the Big Six. Blu-ray Disc started out with Sony (Columbia TriStar and MGM), Disney (Buena Vista), and Fox. Disney and Fox were both impressed by the extra DRM (BD+ and region coding) that the Blu-ray Disc format provided on paper (ironically, BD+ and region coding were both cracked in their first year). Then HD DVD supporters Warner Bros. and Paramount added support for Blu-ray. [cite web |url=http://www.businessweek.com/technology/content/oct2005/tc2005105_6128_tc024.htm |title=A Warner Bros. Green Light for Blu-ray? |accessdate=2008-01-14 |last=Grover |first=Ronald |coauthors=Peter Burrows, Cliff Edwards |date=2005-10-05 |work=BuinessWeek ] But in August 2007, after supporting Blu-ray for over a year, Paramount announced it would release all high-definition content (except titles directed by Steven Spielberg) exclusively on HD DVD. At the same time, DreamWorks Animation SKG, which had not released any high-definition discs, announced it would release exclusively on HD DVD. Explaining their decisions, the companies cited perceived advantages to HD DVD's technology and lower manufacturing costs. The companies together received about $150 million in cash and promotional guarantees, including a Toshiba HD DVD marketing campaign with a tie-in to "Shrek the Third". [cite web|url=http://www.viacom.com/NEWS/NewsText.aspx?RID=1042073|title=Paramount and DreamWorks Animation Each Declare Exclusive Support for HD DVD] [cite news | first=Brooks | last=Barnes | coauthors= | title=Two Studios to Support HD DVD Over Rival | date=2007-08-21 | publisher= | url =http://www.nytimes.com/2007/08/21/technology/21disney.html | work =New York Times | pages = | accessdate = 2007-11-13 ]

From August 2007 HD DVD had a promising future, was seeing its highest sales (though still substantially lower than Blu-ray), had support from major big-box retailers such as Wal-Mart due to low prices, and had the exclusive support of studios such as Paramount Pictures, DreamWorks SKG/Animation, Universal Studios and several Indie film studios. The format also had non exclusive though favourable support (through occasional HD DVD exclusive titles) from Warner Bros., the largest home video releaser.

The tipping point came on January 4, 2008 when Warner Bros., which has the largest market share of DVDs, announced plans to drop HD DVD support completely as of the beginning of June 2008. At the Consumer Electronics Show in Las Vegas, some HD DVD-related events and private meetings with analysts and retailers were canceled, including an event scheduled for the eve of the show sponsored by the North American HD DVD Promotional Group. Toshiba management expressed disappointment over Warner's decision but said that Toshiba would continue promoting the competing format. [cite news | first=Richard Waters | last=Waters | coauthors= Paul Taylor , Mariko Sanchanta | title=Sony DVD move deals blow to Microsoft | date=2006-01-06 | publisher= | url =http://www.ft.com/cms/s/0/9086260c-bc8a-11dc-bcf9-0000779fd2ac.html | work =Financial Times | pages = | accessdate = 2008-01-06 ] [cite news | first= | last= | coauthors= | title=Toshiba Defiant After HD DVD Setback | date=2008-01-06 | publisher= | url =http://ap.google.com/article/ALeqM5iA0y8iwFYWXZBt84MP_jrLjyVCsgD8U0JK4O0 | work =Associated Press | pages = | accessdate = 2008-01-06 ] The following Monday, Toshiba reduced the price of its HD DVD players by 40 to 50 percent, calling price a "deal breaker for the mainstream consumer". [cite news | first= | last= | coauthors= | title=Toshiba cuts HD player prices in Blu-ray fight | date=2008-01-14 | publisher= | url =http://www.reuters.com/article/industryNews/idUSN1441663320080115 | work =Reuters | pages = | accessdate = 2008-01-15 ] At the time, analyst Roger Kay of Endpoint Technologies Associates likened the price cut to the high-stakes Blackjack bet of "doubling down" in an effort to increase market share and "win back the studios". [cite news | first=Michelle | last=Kessler | coauthors= | title=Toshiba turns up heat in DVD war with big price cut | date=2008-01-14 | publisher= | url =http://www.usatoday.com/money/industries/technology/2008-01-14-toshibe-hd-dvd-prices_N.htm | work =USA Today | pages = | accessdate = 2008-01-15 ] Richard Greenfield of Pali Capital called the move a gimmick and predicted that HD DVD would not become widely adopted. [cite news | first=Chinmei | last=Sung | coauthors= Andy Fixmer | title=Toshiba Cuts Retail Prices of HD DVD Players by 50% | date=2008-01-14 | publisher= | url =http://www.bloomberg.com/apps/news?pid=20601101&sid=a5pdEhG3.wuA&refer=japan | work =Bloomberg | pages = | accessdate = 2008-01-15 ] Gartner analyst Hiroyuki Shimizu predicted that while the price cut might extend HD DVD's life somewhat, the limited title library would ultimately "inflict fatal damage on the format", leaving Blu-ray the victor by the end of 2008. [cite news | first=Dan | last=Nystedt | coauthors= | title=Gartner: HD DVD Price Cuts Only Prolong Agony | date=2008-01-28 | publisher= | url =http://www.pcworld.com/article/id,141869-c,dvdtechnology/article.html | work =PC World | pages = | accessdate = 2008-01-31 ]

Warner Bros.' sister studio New Line Cinema followed suit, canceling tentative plans to release titles on HD DVD. [cite news |url=http://www.highdefdigest.com/news/show/New_Line/Industry_Trends/New_Line_Details_Transition_to_Blu-ray/1351 |title=New Line Details Transition to Blu-ray |publisher=High-Def Digest |date=2008-01-08 |accessdate=2008-01-25] [cite web|url=http://www.hddvd.com/go.php/region-coding-delays-the-hd-dvd-release-of-new-line%e2%80%99s-hairspray/|title=hddvd.com - New line titles delayed for HD DVD due to lack of region coding] Other small studios and producers moving exclusively to Blu-ray included National Geographic Society, Constantin Film, and Digital Playground. [ [http://www.homemediamagazine.com/news/html/breaking_article.cfm?sec_id=2&&article_ID=12112 homemediamagazine.com] ] [cite news |url=http://bits.blogs.nytimes.com/2008/01/04/did-warner-brothers-just-kill-hd-dvd/index.html?hp |title=Did Warner Bros. Just Kill HD DVD? |accessdate=2008-01-05] [cite web |url=http://www.latimes.com/entertainment/news/business/newsletter/la-fi-dvd5jan05,0,5760707.story?track=mostviewed-storylevel |title=DVD format war appears to be over |accessdate=2008-01-05] [cite web |url=http://www.ripten.com/2008/01/05/pie-charts-show-true-impact-of-warners-move/ |title=Pie Charts Show True Impact of Warner Bros. Move to Blu-ray |accessdate=2008-01-07]

Warner's move also caused a chain reaction among DVD distributors, most prominently in the form of Wal-Mart's February 15, 2008 decision to phase HD DVD out completely by June 2008. [ [http://www.walmartfacts.com/articles/5673.aspx Wal-Mart - Wal-Mart Moving Exclusively Toward Blu-ray Format Movies and Players ] ] Wal-Mart is the largest DVD retailer in the United States, and its decision prompted the "New York Times" to run a mock obituary for the HD DVD format. The newspaper quoted technology analyst Rob Enderle's contention that if Wal-Mart "says HD DVD is done, you can take that as a fact." [cite web | last = Richtel | first = Matt | authorlink = | coauthors = Eric Taub| title = Taps for HD DVD as Wal-Mart Backs Blu-ray | publisher = New York Times| date = 2008-02-16| url = http://www.nytimes.com/2008/02/16/technology/16toshiba.html?ref=technology | accessdate = 2008-02-15] Four days earlier, Best Buy began recommending Blu-ray Disc as the customer's digital format choice, [cite press release |url=http://www.businesswire.com/portal/site/home/index.jsp?epi-content=GENERIC&newsId=20080211006384&ndmHsc=v2*A1200142800000*B1202792119000*DgroupByDate*J2*L1*N1000837*Zbest%20buy&newsLang=en&beanID=202776713&viewID=news_view |title=Best Buy to Recommend Blu-ray as the Customer's Digital Format Choice |publisher=Business Wire |date=2008-02-11 |accessdate=2008-02-12] and Netflix, the largest online video rental service, began phasing out its HD DVD inventory after stocking both formats since early 2006. [cite web | title = Netflix, Citing a Clear Signal From the Industry, Will Carry High-Def DVDs Only in Blu-ray Format | publisher = Netflix press release| date = 2008-02-11| url = http://netflix.mediaroom.com/index.php?s=43&item=265| accessdate = 2008-02-11] [ [http://biz.yahoo.com/ap/080211/netflix_blu_ray.html?.v=1 Netflix Shuns HD DVD for Blu-Ray Format: Financial News - Yahoo! Finance ] ]

These shifts were preceded by Blockbuster, the largest U.S. movie rental company, which in June 2007 had moved to Blu-ray exclusively in 1450 stores after test-marketing both formats at 250 stores and finding that more than 70% of high definition rentals were Blu-ray discs. [http://web.archive.org/web/20070618180204/http://www.cnn.com/2007/TECH/biztech/06/18/blockbuster.blu.ray.ap/index.html Blockbuster backs Blu-ray] CNN, June 18, 2007. (Web archive)] [ [http://www.blockbuster.com/hd Blackbuster Online - HD] ] In July 2007, Target Corporation, began carrying only Blu-ray standalone players in its stores, promoting them with end cap displays featuring Blu-ray Disc movies from Sony and Disney. [ [http://www.reuters.com/article/businessNews/idUSN2643741920070726 Target to sell only Blu-ray DVD players | Reuters ] ] In January 2008, UK retailer Woolworths Group plc said it would stock only Blu-ray discs in its 820 stores beginning in March 2008. [cite news | first= | last= | coauthors= | title=Woolworths backs blu-ray format over HD-DVD | date=2008-01-28 | publisher= | url =http://www.woolworthsmediacentre.co.uk/index.php?option=com_content&task=view&id=76&Itemid=33 | work =Woolworths press release | pages = | accessdate = 2008-02-08 ]

PlayStation 3

Sony's decision to incorporate a Blu-ray Disc player as a standard feature of the PlayStation 3 video game console also helped ensure the format's eventual triumph.cite news | first=Will | last=Smale | coauthors= | title=How the PS3 led Blu-ray's triumph | date=2008-02-19 | publisher= | url =http://news.bbc.co.uk/1/hi/business/7252506.stm| work =BBC News | pages = | accessdate = 2008-02-23 ] By the time Toshiba ceded the market, about 10.5 million of the Sony consoles had been sold worldwide versus an estimated 1 million HD DVD players – including both standalone units and the add-on player for Microsoft's Xbox 360 console. This equipment gap was a factor in Blu-ray titles (including the ones bundled with the PS3) outselling their HD DVD counterparts two to one in the United States and three or four to one in Europe. Sony's strategy came at a cost. The company initially sold the PlayStation 3 at an estimated loss of more than US$200 per unit that resulted in a total loss estimated about $3 billion, but analysts, such as Richard Hooper, with Screen Digest, expect Sony to recoup far more than that.cite news | first=Dan | last=Sabbagh | coauthors= | title=How the Blu-ray war was won - Sony outspent, outsold Toshiba | date=2008-02-21 | publisher= | url =http://business.timesonline.co.uk/tol/business/industry_sectors/media/article3405959.ece | work =The Times | pages = | accessdate = 2008-02-23 ]

Toshiba announcement and aftermath

On February 19, 2008, Toshiba announced it would cease developing, manufacturing and marketing HD DVD players and recorders.cite news|url= http://www.toshiba.co.jp/about/press/2008_02/pr1903.htm|title=Toshiba Announces Discontinuation of HD DVD Businesses|publisher=Toshiba Press Department|date=2008-02-19|accessdate=2008-02-19] On that same day, Universal Studios announced it would release its titles in the Blu-ray Disc format, following two years of exclusive HD DVD support. [ [http://www.highdefdigest.com/news/show/Universal/Breaking:_Universal__Studios_Goes_Blu/1483 highdefdigest.com] ] The studio subsequently released its final two HD DVD titles: "Fletch" on March 13, 2008 and "Atonement" on March 18. [ [http://www.highdefdigest.com/news/show/Universal/Industry_Trends/Universal_Ends_HD_DVD_Support_with_Atonement/1527 Universal Ends HD DVD Support with 'Atonement' | High-Def Digest ] ] On February 20, 2008, Paramount Pictures announced it would back Blu-ray, becoming the last of the major studios to do so. [cite web
url=http://www.hollywoodreporter.com/hr/content_display/news/e3ic60f3f2e7077b9b8dc969933f25fc601|title=Hollywood Reporter:Paramount seals Blu-ray sweep] Paramount ceased HD DVD production on February 28, 2008, with "Things We Lost in the Fire" and "Into the Wild" becoming the studio's last HD DVD releases, both released March 4, 2008. [ [http://www.hollywoodreporter.com/hr/content_display/home_entertainment/video/e3i0055cabe5256398afc4fc3dc4e59ea6f Paramount stops HD DVD production ] ] The studio scrapped the HD DVD version of "Bee Movie", which, on May 20, 2008, joined "Face/Off" and "Next" in becoming the studio's first Blu-ray releases . [cite news | first=Thomas K. | last=Arnold | coauthors= | title=Paramount unveils initial Blu-ray slate | date=2008-04-30 | publisher= | url =http://www.reuters.com/article/industryNews/idUSN3037540220080430 | work =Reuters | pages = | accessdate = 2008-05-01 | language = ]

Microsoft ceased production of Xbox 360 HD DVD players while considering how its HDi and VC-1 technologies could be applied to other platforms. [cite news | title=Microsoft Pulls Plug on HD DVD Players | date=2008-02-24 | publisher= Associated Press | url =http://ap.google.com/article/ALeqM5ifXeLMB28kre9AK-YgVq7Y4ZEJ9wD8V0RI780 | accessdate = 2008-02-24 ] Microsoft's VC-1 codec is already in use in Blu-ray titles; Warner Bros. encodes the main features of all titles in the format but encodes supplements and bonus content in MPEG-2. Microsoft has since entered into talks with Sony regarding Blu-ray [cite news | title=Sony chews the Blu-ray fat with Microsoft | date=2008-03-07 | publisher= RegHardware.co.uk | url =http://www.reghardware.co.uk/2008/03/07/sony_apple_microsoft_in_bluray_talks/ | accessdate = 2008-03-10 ] , although Windows Vista has supported basic filesystem and shell functionality for both Blu-ray Disc and HD DVD since launch, relying on 3rd parties to implement movie playback. Rumors of a Blu-ray drive for the Xbox 360 have been officially denied by Microsoft. [cite web|url=http://www.reuters.com/article/reutersEdge/idUSN1224707720080313|title=Microsoft says no Blu-ray for Xbox 360]

Toshiba's pull-out did not have a significant effect on stand-alone Blu-ray player sales, which rose 2 percent from February to March, 2008, after falling 40 percent between January and February, according to NPD Group. NPD noted that upconverting DVD player sales rose 5 percent in the first quarter of 2008 over the same quarter of 2007 but did not release a comparison of first quarter Blu-ray sales compared to the same quarter of 2007. At the time of the report, upconverting DVD players cost around $70 versus $300 for Blu-ray players. [cite news | first=Eric | last=Taub | coauthors= | title=Blu-ray: The Future Has Been Delayed | date=2008-04-30 | publisher= | url =http://bits.blogs.nytimes.com/2008/04/30/blu-ray-the-future-has-been-delayed/index.html?ref=technology | work =The New York Times | pages = | accessdate = 2008-04-30 | language = ]

ee also

* Format War
* Videotape format war

References