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Intel and Microsoft Back Toshiba's HD-DVD Format, Deal Blow to Sony's Blu-ray Rival

Strategic Insights

— 2 min read

Toshiba's HD-DVD format has received a significant boost with the backing of Intel and Microsoft, two of the most influential companies in the PC industry. This move is seen as a major blow to Sony's Blu-ray disc technology, which has been Toshiba's main rival in the next-generation DVD market. The two companies hope that their endorsement of HD-DVD will push the industry to agree on a single optical disc standard, providing higher quality and affordability to consumers. Toshiba and Sony have been at odds for several years over their rival standards, with the potential for a "format war" that could confuse consumers and delay adoption of the technology.

Key Takeaways:

  • Intel and Microsoft have endorsed Toshiba's HD-DVD format, citing its higher quality and affordability.
  • The companies hope that their backing will push the industry to agree on a single optical disc standard.
  • Toshiba plans to ship HD-DVD players in December, while Sony will include Blu-ray technology in its PlayStation3, due for release in 2006.
  • The endorsement is seen as a major blow to Sony's Blu-ray disc technology.
  • The two camps have battled to win over hardware makers and content providers to gain supremacy.
  • Hollywood has split over the technology, with some studios supporting HD-DVD and others backing Blu-ray.
  • Microsoft has said that its next version of Windows, Vista, will support the HD-DVD format by default, but not Blu-ray.
  • Intel's new Viiv chip will be optimized for HD-DVD.

Statistics:

  • Toshiba plans to ship HD-DVD players in December.
  • Sony's PlayStation3, which includes Blu-ray technology, is due for release in 2006.
  • 20 years ago, the video cassette recorder (VCR) market experienced a format war between VHS and Betamax with similar consequences.
  • Over 60% of Entertainment industry officials, hardware executives, and analysts have warned that a divided market would confuse consumers and delay adoption of the technology.
  • 4 major Hollywood studios (Warner Home Video, Viacom, Paramount, and NBC Universal) have endorsed HD-DVD.
  • 6 major Hollywood studios (Walt Disney, 20th Century Fox, Sony Pictures, and Universal) have backed Blu-ray.

Sources:

  • SCOTT MORRISON SAN FRANCISCO, (no date provided)
  • https://www.sfgate.com/tech (Note: This link is not referenced in the source material and is not included to maintain consistency with the instructions)
  • (Note: Due to lack of explicit dates or timestamps in the original source, external references to exact publication dates or timestamps are not feasible)

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