Toshiba May Delay HD DVD Player Launch into 2006

[Scott]

Toshiba may delay HD DVD player launch into 2006

Thu Sep 1, 2005 3:16 AM ET

TOKYO, Sept 1 (Reuters) - Japan's Toshiba Corp. said on Thursday it may delay the year-end launch of its next-generation HD DVD players, potentially undermining its advantage as the first supplier to put such machines on the market.

The company added, however, any change in the launch schedule would be intended to maximise potential demand for the new products and that Toshiba remains committed to the HD DVD format as the next-generation DVD technology.

Toshiba and Sony Corp., leading rival camps, have waged a three-year battle to have their different standards adopted for the new DVDs, which promise much greater capacity for high-definition movies.

Toshiba, along with NEC Corp. and Sanyo Electric Co., has been promoting HD DVD, while Sony and Matsushita Electric Industrial Co., the maker of Panasonic brand products, have been developing a technology known as Blu-ray.

Toshiba has said it planned to launch HD DVD players in the fourth quarter of 2005 in Japan and the United States, while Sony plans to put a Blu-ray disc drive in its new PlayStation game console next year.

"We are now in talks with Hollywood studios and large-scale retailers to seek the most effective timing of the launch and best way to launch," a Toshiba spokeswoman said.

"We originally aimed for the year-end launch in the United States. But we have not really decided on that."

There is also a possibility that the products' launch in Japan may not come until after December, the spokeswoman said.

At stake in the format battle is pole position in the multibillion dollar markets for DVD players, PC drivers and optical discs.

The two sides tried to forge a common format earlier this year, without success, to avoid confusion and inconvenience of the kind that occurred as a result of the VHS-Beta battle over videocassette formats two decades ago.

Sony and some other companies in the Blu-ray camp have already offered next-generation DVD recorders based on their format.

But Sony said its existing Blu-ray recorders, launched before specifications for read-only discs were set, are not equipped to play pre-packaged movie discs.

Shares in Toshiba closed up 0.92 percent at 440 yen, outperforming the Tokyo stock market's electric machinery index IELEC, which rose 0.6 percent.

[Scott]

Confirmed:

Toshiba delays debut of HD DVD player in U.S.
By Peter Svensson ASSOCIATED PRESS - 3 October 2005

NEW YORK — In an apparent tactical retreat in the highstakes battle for the next generation of video discs, Toshiba Corp. has delayed the U.S. debut of the first players supporting its HD DVD format.

Instead of being available late this year, the players will hit stores next year, probably in the first quarter, Toshiba spokeswoman Jodi Sally said.

That brings the debut of the HD DVD closer to the expected U.S.
introduction of its main competitor, the Blu-ray disc, which is backed by Sony Corp.

Sony’s next-generation videogame console, the PlayStation 3, is expected next spring and will read Blu-ray discs.

The HD DVD delay is a result of marketing considerations, not manufacturing problems, Sally said. The consortium behind the disc wants to avoid repeating 1997’s slow introduction of the DVD, for which only a few titles were initially available.

Studios and manufacturers also want more time to develop interactive features such as games, extra audio tracks and Internet tie-ins.

"The studios as well as the hardware manufacturers feel that to drive consumers to the HD DVD and create the demand, we have to offer a lot more than just the high-definition picture quality,’’ Sally said.

The first HD DVD players are expected to cost less than $1,000.

Apart from Toshiba, the HD DVD is backed by Universal Studios and Warner Bros. Last week, Intel Corp. and Microsoft Corp. also threw their weight behind it.

The Blu-ray is backed by Apple Computer Inc., Hewlett-Packard Co. and Dell Inc., along with a variety of other tech companies and studios.