Toshiba Set to Launch High-Definition DVD Player, Sparking Format War

Strategic Insights -

Toshiba's planned launch of the world's first high-definition (HD) DVD player marks a significant milestone in the industry's transition to next-generation technology. The player, set to go on sale in Japan next week, will be released a full three months before Sony's first Blu-ray player, sparking a "format war" that could last for up to three years. The competition between the Blu-ray and HD DVD formats is expected to be fierce, with companies using every trick in the book to assert dominance.

Key Takeaways:

  • Toshiba's HD DVD player is set to launch in Japan next week, three months before Sony's first Blu-ray player.
  • The competition between Blu-ray and HD DVD is tipped to be a three-year struggle for supremacy.
  • The Blu-ray consortium includes 100 corporate members, including Sony, Panasonic, and Dell.
  • The HD DVD Promotion Group comprises 20 members, including Toshiba, Sanyo, and Microsoft.
  • Industry analysts predict that the format war will be decided by which technology reaches an installed base of 10 million users first.
  • Samsung plans to launch a Blu-ray player in the US next month, priced at $1,000.
  • Xbox 360, Microsoft's games console, does not incorporate an HD DVD player, raising questions about its ultimate plan.

Statistics:

  • Toshiba's HD DVD player is expected to retail for around 100,000 yen ($900) in Japan.
  • The delay of Sony's PlayStation3 Blu-ray video games console is expected to last six months until November.
  • The Blu-ray consortium includes a range of important allies, including Apple, Dell, Fox, and Walt Disney.
  • Five of the six biggest American movie studios (with 80% of DVD sales in the US) appear to back Blu-ray.
  • Toshiba's launch of the HD DVD player excites analysts, with Nomura's analyst stating: "No trick will be too dirty to try to assert the dominance of either the Blu-ray or the HD DVD format."

Sources:

  • The Times (no date provided)
  • Nomura (analyst statement, no date provided)
  • CLSA (analyst statement, no date provided)
  • Samsung (launch of Blu-ray player in the US)
  • Sony (delay of PlayStation3 console)