Today Microsoft anounced that they will cease the production of HD-DVD players as accessoire for Xbox 360 video game console, as a result of Blu-Ray’s victoriously concluded format war, that has been raging since 2005. Yet another letdown for Toshiba, who recently stated it will stop its production of HD-DVD compatible DVD players.
Earlier this month film studio Warner Brothers chose to release their films as of now only on Blu-ray DVDs. Even Wall-Mart, the largest discount departement stores chain in the U.S., decided to sell only Blu-Ray DVDs and hardware. This, together with other unfortunate circumstances, has led to the end of the three-year lasting format war where HD-DVD manifested as the losing participant. Subsequently, Microsoft will stop producing HD-DVD players for their Xbox 360 game console. According to them this decision will not affect materially, nore their market position. Meanwhile, rumours have emerged claiming that the software corporation is considering an external Blu-Ray player for the Xbox 360 platform. The question is whether the Xbox 360 with external Blu-Ray player will be able to compete financially with the Playstation 3, which has an integrated Blu-Ray DVD player.
Toshiba tried to turn the tide by lowering their prices considerably, without result. The financial damage for Toshiba caused by the failure of the HD-DVD is estimated presumably at a 100 million Euros. The company was not available for comments.
This whole affair reminds of the VHS vs. Betamax format war during the eighties where then the VHS format had beaten Betamax, not necessarily due to any technical superiority, but supposedly (this is the commonly-held belief) to sly marketing. This time, the better technology outcame as the new media platform.
