Las Vegas - The group trying to promote the HD-DVD format as the high-definition video standard cancelled its planned party Sunday night at the Consumer Electronics Show in the aftermath of the decision by Warner Bros. to back the rival Blu-Ray format. The cancellation was seen by many observers at the world's biggest technology trade show as tantamount to an admission of defeat by the HD-DVD consortium, whose main backers include Toshiba, Microsoft and Intel. Blu-Ray was invented by Sony, and its backers include Panasonic and Samsung.
With the move by Warner, five of the big seven Hollywood studios now back Blu-ray Disc with only Paramount and Universal backing HD- DVD.
The high-definition DVD's are set to replace standard DVDs, which account for an 18-billion-dollar market in the US alone, and the format battle is one of the most crucial in the technology world. Its outcome could be fateful for Sony, which famously lost the last similar confrontation when its Betamax system lost out to the competing VHS videotape system.
Now the battle seems to be going in Sony's favour with the HD-DVD Promotion Group cancelling its plans for CES to "consider its options."
"Based on the timing of the Warner Home Video announcement, the HD-DVD Promotional Group has decided to cancel all press meetings at CES, in addition to the press conference that was scheduled for Sunday evening," the announcement said. "We apologize for any inconvenience this may cause. We are currently discussing the potential impact of this announcement with the other HD-DVD partner companies and evaluating next steps."
Reading between the lines, analysts said the announcement was tantamount to surrender.
"I think the war is over. HD-DVD has lost. It really is game-over for Toshiba and the other vendors," said Robin Harris, an analyst with Data Mobility Group.
Analyst Tom Coughlin said the decision had given Blu Ray unstoppable momentum.
"This could be the beginning of a major, pivotal turning point in the high-def format war," Coughlin said, explaining that the move would be important for the industry because many consumers have put off buying systems until the winning format emerges.
As consumers start to purchase more Blu-Ray systems, manufacturers will increase production and lower their prices, likely leading to wide-scale consumer adoption.
