HD DVD Camp Ready to Give Up?

Anonymous sources in the Hollywood Reporter say Toshiba is finally ready to cry uncle, though company reps continue to deny it.

After a valiant battle to keep its format alive following a brutal blow from Warner Bros., Toshiba may finally be getting ready to wave a white flag. According to anonymous sources cited in the Hollywood Reporter, an announcement of HD DVD’s death will be on its way within weeks.

Toshiba representatives officially denied the move, but offered the Reporter only weak affirmations of the company’s intention to continue. “Toshiba will continue to study the market impact and the value proposition for consumers, particularly in light of our recent price reductions on all HD DVD players,” Toshiba’s VP of marketing, Jodi Sally, told the paper.

Following the Warner fiasco, figures show that Toshiba’s attempt to get back on the horse with deeply discounted HD DVD players didn’t work.  NPD Group data shows 65 percent of all HD players sold that week going to Blu-ray, with less than half, 28 percent, going to HD DVD. The Reporter’s sources claim this move may have cost hundreds of dollars per player, and could be the final straw that sends HD-DVD under.

Other signs of the format’s demise include disc sales, which show Blu-ray significantly outpacing HD DVD by capturing 81 percent of sales, and retailer preference for Blu-ray, such as Best Buy’s announcement to back Blu-ray earlier this week.