HD DVD and Blu-ray Are Both Losers

Based on a new media research report that says neither the HD DVD nor its Blu-ray contender will deliver a "knock out" punch in the digital video ring, consumers may well think twice before upgrading their home theater system.
That's the conclusion drawn in a report by media researchers at The Screen Digest, which projects that both formats will coexist until some form of common ground is established, much like the current situation with recordable DVDs.
Opinions vary among industry watchers, some of whom argue that Blu-ray, backed by Sony and most of the major film studios, is in a better position to dominate.
"The net result of the format war and the publicity it has generated will be to dampen consumer appetite for the whole high definition disc category," said Ben Keen, Screen Digest chief analyst, in a statement.
The report notes that the success of DVD was based on the fact that it offered better quality and greater convenience than the VHS format it replaced. This time, though, both standards support similar features, and the differences are likely to confuse the average consumer.
For example, while the two formats look similar, a Blu-ray disc cannot be played on an HD DVD player and vice versa. And, Blu-ray discs hold up to 50 GB of content compared with HD DVD's 30 GB, Screen Digest notes.
What's not confusing is the price: each player is listing for as much as $1,500.
Sony has promised to provide Blu-Ray technology in its next-generation PlayStation 3 gaming console, which will give the format even more momentum, some analysts say.
Michael Goodman of Yankee Group said that Toshiba and its partners must be pleased, given that they were first out of the gate and that Microsoft will provide an HD DVD peripheral for the Xbox360 gaming machine.
By 2010, Screen Digest believes that just under one-third of all spending on video discs in the U.S., Japan, and Europe will be generated by sales of high definition formats.