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Posted by Allan on 09/28/05 20:55
HD-DVD Launch Delayed Until 2006
Toshiba says the U.S. launch of its next-generation HD-DVD players is
now slated for sometime in February or March of next year.
September 28, 2005
The U.S. launch for HD-DVD players has been delayed until at least
February of next year, Toshiba said Wednesday, but its likely its
next-generation DVD player will still be out before the ones with the
competing Blu-ray format backed by Sony.
Sony and Toshiba have been waging a three-year battle for supporters
of their respective formats, both of which promise better visual
quality and storage capacity over current-generation players. The
players with the HD-DVD format backed by Toshiba were originally
scheduled to hit the U.S. market by the end of the year.
We have been discussing with content holders the most effective way
to launch in the U.S. market, and it will probably be in February or
March, said Yoshihide Fuji, Toshiba corporate vice president, at the
news conference.
Early this month, Toshiba had indicated the delay in the launch but
had not yet specified the exact timing (see U.S. HD-DVD Launch Off Til
O6).
The launch of HD-DVD, even as late as March 2006, could give it an
edge over Blu-ray, which is not expected to hit stores in the U.S.
until later in the spring.
Blu-ray will launch around spring [2006] and [HD-DVD] will get a
time-to-market advantage, said Josh Martin, an analyst with research
firm IDC.
Toshiba executive Mark Knox told Red Herring earlier this month the
HD-DVD delay stems from having to finalize discussions with HD-DVD
partners such as retailers, studios, and replication houses as the
partners want to maximize the success of the launch.
Hollywood studios feel its best to launch the technology when all the
hardware and software is ready to go instead of trickling it out
before its finished. One task the HD-DVD group needs to do is build
up the inventory of the products before they are launched.
However, another possible reason for the delayed launch could be that
the HD-DVD group took longer than expected to finalize content
protection schedules, said Mr. Martin. The AACS, or Advanced Access
Content System, provides copy protection to next-generation DVDs to
prevent piracy. Both formats will carry this system.
Mr. Martin said the February-March timeframe for the launch of HD-DVD
players in the U.S. seems like a reasonable target.
Slim Chance for More Delays
There remains a chance for more delays, but it is slim, said Mr.
Martin. The Blu-ray and HD-DVD camps could decide to restart talks
over unifying the two formats. Or, the AACS finalization could get
pushed back further, said Mr. Martin.
The Blu-ray and HD-DVD camps have been in talks for several months on
unifying the formats to avoid confusion in the marketplace for
consumers. But talks have come to a standstill now as the two sides
have not reached a compromise (see Toshiba: Blu-ray Wont Bargain).
Sony plans to launch its PlayStation 3 video gaming console around the
same time as the Blu-ray products and this generation of the
PlayStation will carry a Blu-ray drive. Toshiba has said the Japan
launch of HD-DVD players will stay on its end-of-year launch schedule.
On Tuesday two tech giants, Microsoft and Intel, announced their
backing for the HD-DVD format (see Microsoft, Intel Vote HD-DVD). This
has solidified HD-DVDs position as it previously had backing only
from Sanyo and NEC.
Blu-ray, on the other hand, has backing from several computer and
computer electronics companies such as Apple, Hewlett-Packard, Dell,
Samsung, Hitachi, Philips, and movie studios such as Sony Pictures,
Walt Disney, and 20th Century Fox. HD-DVD has studio backing from
Warner Bros., Paramount, and Universal Pictures (see Fox Picks Blu-ray
Format).
Reuters contributed to this report.
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