The talks between Sony and Toshiba aimed at bringing out a unified next-generation disc format have collapsed once again. This means that the two incompatible formats-HD-DVD and Blu-Ray- will probably hit the markets and cause heartburn among consumers.
This news was confirmed by Sony Computer Entertainment chief Ken Kutaragi who said, "There's very little chance that the negotiations will go through." His comments came after Toshiba's announcement last month that it would not agree to a unified disc format based on the Blu-Ray disc. Kutaragi added that Sony would go ahead with its plans to adopt Blu-Ray for the PS3.
He said that this decision was based on "product planning." Analysts say that this decision will probably tip market balance in favor of the Blu-Ray disc since PlayStation owners will already own these players.
The difference between the two formats is pretty small. Both formats use blue lasers instead of the red one to store data at higher densities. While the Blu-Ray discs will hold a storage capacity of 50 GB, HD-DVD discs will only support 30GB. Toshiba contends that this is more than enough as these discs can be produced using the machinery that is already available.
Sony argues that capacity should take priority over cost of production and increased storage space will become an essential feature in the future as high-definition entertainment catches on. The problem has been compounded by the fact that industry majors have taken sides.
HD-DVD has NEC and Sanyo, and more than 80 films from studios such as Paramount, Warner Bros and Universal on its side, while Sony's supporters include Philips, Apple, Hitachi, Panasonic, Pioneer, Samsung and LG.
This deadlock between the two sides has raised the spectre of the VHS vs. Betamax-style format war in the 1980s. However, there appears to be hope yet for a unified format as Sony Corp, Matsushita Electric Industrial Co and Toshiba Corp could meet again after their respective shareholders meetings are held later this month. But time may not be on their side as the formats are set to be released by the end of this year.