It's been a rough two months for Toshiba and the HD DVD
Promotional Group, and the dark clouds show no signs of clearing. Gartner Inc.
is already calling
Blu-ray the winner in the high-definition disc arena and says that the
recent moves by Toshiba to cut
prices is nothing more than "useless
resistance."
"Gartner believes that Toshiba's price-cutting may
prolong HD DVD's life a little, but the limited line-up of film titles will
inflict fatal damage on the format," said Gartner analyst Hiroyuki
Shimizu. "Gartner expects that, by the end of 2008, Blu-ray will be the
winning format in the consumer market, and the war will be over."
The news from Gartner isn't the only bit of bad news rolling
in for the HD DVD camp today, however. Woolworths may be a name that has long
since been forgotten in the United States, but the retail chain still lives on
in Europe and other regions around the world. The retailer recently announced
that its 820 stores will
no longer carry HD DVD titles and it instead will put its full support
behind Blu-ray.
The company states that the reason for the change of heart
was due to Blu-ray's stellar performance over the holiday season -- according
to Woolworths, Blu-ray titles held a commanding ten-to-one sales lead over HD
DVD titles.
"Sales figures clearly show that the market is moving
towards one format of high definition DVD, Woolworths' Steven McGunigel. “The
main reason is the success of Sony's PlayStation 3 machine. Because it plays
Blu-Ray discs, there are over ¾ million homes in the UK that can view the new
high definition format. Switching to Blu-Ray only will provide one clear offer
to customers in the format they want to watch high definition movies in."
Woolworths' stores will become Blu-ray exclusive in March.
HD DVD titles will continue to be sold from Woolworth's online site, but
brick-and-mortar shelf space will be reserved for Blu-ray.
Blu-ray's momentum in the high-definition DVD format war picked
up steam when Warner Bros. announced that it would back Blu-ray and cease
further HD DVD releases beginning mid-year. Similar announcements were made
by New
Line Cinema and HBO
Home Video.
Ken Graffeo, executive VP for Universal Studios and
co-president of the HD DVD Promotional Group, tried
to put a pleasant spin on the recent turn of events and notes that
Toshiba's HD DVD players are also perfect for upconverting
standard-definition DVDs.