Toshiba Refuses to Deny Abandoning HD-DVD

According to news agency Reuters, Toshiba is set to abandon HD DVD after a series of setbacks for the high-def format which it backs.

A report from the service reads, "a Toshiba source told Reuters the Japanese company is planning to give up on its HD DVD format, conceding defeat to Blu-ray."^‡

Microsoft, which has supported HD-DVD with the Xbox 360, has yet to comment.

Meanwhile, The Times^‡‡ reports that "members of the HD-DVD consortium, which is the 135-strong corporate alliance formed to promote the Toshiba format of next-generation DVDs, told The Times that they expected the group’s 'total collapse' within the next few weeks."

Toshiba has not confirmed that it will ditch HD-DVD, but has said that it will review its strategy related to the format - so it is not denying it either. One Toshiba insider reportedly told Yahoo News that a board meeting on the subject could be held as soon as Tuesday^±.

The latest setback for the HD-DVD format comes in the form of US retail giant Wal-Mart dropping HD-DVD products from its shelves. As of June, when existing stock has depleted, Wal-Mart - North America's largest DVD retailer - will no longer sell products from the format championed by Toshiba.

While the full transition will be complete by summer, Wal-Mart tells us, "in less than 30 days customers will see a more predominant move toward Blu-ray in stores, clubs and online."

"We’ve listened to our customers, who are showing a clear preference toward Blu-ray products and movies with their purchases", said Gary Severson, senior VP of Home Entertainment for Wal-Mart US "With the customers best interest in all we do, we wanted to share our decision and timeline with them as soon as possible, knowing it will help simplify their purchase decision, increase selection, and increase adoption long term. We anticipate enhancing our selection with continued great values in hi-definition Blu-ray products, so our customers can further enhance their entertainment experience at home."

His comments echo those of president and COO of US electronics retailer Best Buy, Brian Dunn, when Best Buy announced that it would favour Blu-ray over HD DVD.

Another major player that has recently jumped on board the Blu-ray bandwagon is online US rental service, Netflix.

“The fat lady has sung”, uttered Rob Enderle, a technology industry analyst in Silicon Valley and president and principal analyst of the Enderle Group. "Wal-Mart is the biggest player in the DVD market. If it says HD DVD is done, you can take that as a fact."^†

SPOnG has contacted Microsoft to see if it will continue to support HD DVD, but at the time of press no comment was available.

^{Source: ‡Reuters, ‡‡The Times, ±Yahoo News,†New York Times}