UPDATED: High-Def Format War - Toshiba Surrenders

Update: Microsoft has responded to SPOnG's request for comment be re-issuing the statement it made yesterday. “We do not believe the recent reports about HD DVD will have any material impact on the Xbox 360 platform or our position in the marketplace. As we’ve long stated, we believe it is games that sell consoles and Xbox 360 continues to have the largest next-gen games library with the most exclusives and best selling games in the industry”, a representative told us.

As for if and when we will see a Blu-ray drive for the Xbox 360, we were told, “We do not comment on rumour or speculation”.


Original Story: War is over! Toshiba has confirmed that is dropping the HD-DVD format, which competes with Sony's Blu-ray. The admission comes in a press release stating that the company will, "no longer develop, manufacture and market HD DVD players and recorders".

The reasoning? Atsutoshi Nishida, president and CEO of Toshiba Corporation, tells us, "We carefully assessed the long-term impact of continuing the so-called 'next-generation format war' and concluded that a swift decision will best help the market develop.

"While we are disappointed for the company and more importantly, for the consumer, the real mass market opportunity for high definition content remains untapped and Toshiba is both able and determined to use our talent, technology and intellectual property to make digital convergence a reality."

The company will wind down its shipments of HD-DVD players and recorders, aiming to stop providing the machines entirely by the end of March.

This comes following a number of recent blows to the HD-DVD camp. The most recent (and arguably the last nail in the coffin) was the decision from Wal-Mart to no longer sell HD-DVD products in store. Prior to that, we saw US consumer electronics retailer Best Buy turn away from the format and online US rental service Netflix opt to drop HD-DVD from its offering.

So, what does this mean for Microsoft and the Xbox 360? Yesterday, SPOnG told you that Microsoft was adopting a 'wait and see' policy with regard to Toshiba's next move before making an announcement on the future of its HD-DVD player peripheral. Well, the decision from Toshiba is in, but we're still waiting on a decision from Microsoft. Given Toshiba's surrender in the format war, however, it is highly unlikely that Microsoft will continue to support HD-DVD.

Rumours are circulating, however, that a Blu-ray drive for the 360 is in development and could be with us as soon as May.

Before Toshiba's announcement was confirmed to be more than rumour, May appeared a tad soon. With the confirmation in place, however, the timing now verges on the probable and not just the possible. The fact that as of yesterday, Microsoft still hadn't been advised by Toshiba as to the future of the format, could add a some time to the equation though.

SPOnG, for one, is glad to see this whole bloody war over so that we can focus on the aspect of the console business that really matters - games.