Toshiba has announced that it will stop making its high definition DVDs, ending the battle with rival format Blu-Ray. Following a review of its business, Toshiba said it would stop production of HD DVD players and recorders. Toshiba president Atsutoshi Nishida said "We made a quick decision, judging that there is no way of winning the competition." Toshiba said the tipping point came last month when Warner Bros’ followed a number of other film studios in deciding to release its movies only in the Blu-Ray format.
Is it expected that PS3 sales will rise following the announcement by Toshiba. Also, it is speculated that Microsoft may release a Blu-Ray Drive for the XBox 360. In the UK, DSGI, which owns the Currys chain, said it would stop selling HD DVD players after Toshiba’s announcement. Last week, Wal-Mart, the world’s largest retailer, announced it would sell high-definition discs only in the Blu-ray format at its 4,000 US stores.
Universal, Paramount and DreamWorks studios signed up to produce movies in HD DVD, but Toshiba’s withdrawal is expected to significantly reduce the number of films available in the format.