By Stevie Smith Feb 15, 2008, 11:01 GMT
The recent Blu-ray defections of Warner Bros., New Line Cinema, Best Buy, Netflix, and others have prompted a wealth of speculation suggesting that Toshiba’s ailing HD-DVD platform is in serious danger of collapsing as consumers begin to turn their attentions en masse to Sony’s competing format.
Industry sources claim the end is nigh for Toshiba's HD-DVD format. Credit: Sony.
And now the Hollywood Reporter has moved to add to mounting rumour by claiming “reliable industry sources” are indicating that Toshiba is only a matter of weeks away from finally admitting defeat and downing tools in its efforts to oppose the ever-increasing popularity of Blu-ray.
Of course, Toshiba’s official standpoint on the HD-DVD vs. Blu-ray conflict is that: “Based on its technical advancements, we continue to believe HD-DVD is the best format for consumers, given the value and consistent quality inherent in our player offerings.”
However, Jodi Sally, VP of Marketing for Toshiba America Consumer Products, has also said that market developments occurring in the past month mean that Toshiba “will continue to study the market impact and the value proposition for consumers.”
The Reporter’s (unnamed) sources point to significant losses Toshiba is incurring on each HD-DVD player it sells following a flurry of price drops designed to counteract the recent defections of major studio and retail supporters. Also, industry data is showing HD-DVD failing to impact against the increasing placement of Blu-ray, in both hardware and movie disc performance.
NPD Group sales data for the period immediately following the January departure of Warner Bros from the HD-DVD camp indicates that Blu-ray took a whopping 93 percent of hardware sales for that week. Subsequent price reductions to HD-DVD players also failed to find favour with consumers, as NPD numbers for the week ending Jan 26 still showed Blu-ray holding a distinct advantage with 65 percent of the hardware market.
Similarly, sales data amassed by Nielsen VideoScan First Alert reveal HD-DVD is also flagging in high-definition movie sales. Specifically, the top selling Blu-ray disc through to the week ending Feb 10 sold more than three times as many copies as the best-selling HD-DVD movie for the week. Nielsen’s figures for the week also show Blu-ray snatching 81 percent of all HD movie disc sales.According to the industry insiders, an official announcement, likely one of defeat, could be forthcoming from Toshiba “in a matter of weeks.”
If Toshiba does cave then it will certainly be interesting to see how that decision affects fellow HD-DVD proponent Microsoft Corp., which offers a standalone HD-DVD player with its Xbox 360 videogames console.
In recent weeks, Microsoft has indicated that it would consider introducing a standalone Blu-ray player to complement the Xbox 360 depending on which HD format was finally crowned the victor.
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