Confusion Reigns Over Next-Generation Disc Formats

Representatives from both Sony and Toshiba have made statements in Japanese newspaper Nihon Keizai Shimbun, denying reports that any settlement has been reached over negations for a single high definition DVD standard. Reports in the same newspaper had previously suggested that the two companies - the figureheads for the opposing Blu-Ray and HD-DVD formats - had agreed on a new standard which would used the hardware technology of Blu-Ray combined with the software technology from Toshiba's HD-DVD format. When first reported, the now-discredited agreement appeared to signal a victory of Blu-Ray over HD-DVD, with Toshiba apparently adopting Sony's 0.1 millimeter Blu-Ray disc technology over its own, cheaper to manufacture hardware. Both companies are adamant that no such decision was ever agreed, but they have been happy to confirm that negotiations are still ongoing and the both companies wish to avoid a format war. "The only true aspect of this report is that Sony, Matsushita and Toshiba are currently engaged in negotiations," a Sony representative stated. The negotiations are still of particular relevance to the video games industry, as Sony has announced that the PlayStation 3 would use the Blu-Ray format, and any delay in finalizing the Blu-Ray standard could have an impact on the release of the PlayStation 3. It now seems clear that the imminently announced Xbox 360 will use a conventional DVD format, however.