The fight between Blu-ray and HD-DVD, reminiscent of the 1980s battle between Betamax and VHS tape formats, isn't just vexing consumers. It's shaping up as a business disaster for movie studios, electronics companies and retailers that had counted on a robust holiday selling season for the fancy new players - which cost $500 to $1,000 - and movies to play in them.
Technology companies have divided into two warring camps, each backing one of the formats. Attempts to come up with a single format collapsed last year, so the two sides decided to duke it out in the marketplace. As they do, consumers are mostly staying on the sidelines, causing sales to fall far short of initial projections.
A winner could still emerge, but some experts say it's just as likely that consumers, fearful of buying an expensive player that will turn out to be worthless, will just say no to high-definition discs altogether. In the best case, analysts predict, the format war will go on for another year or so before a clear winner emerges, delaying an industry switchover to the improved discs.
Sony's PlayStation 3, released last week, doubles as a Blu-ray player, and Microsoft's Xbox 360, released last year, can play HD-DVDs with an accessory component. Sony expects to have shipped 2 million PS3s by the end of the year, trailing Microsoft's total shipments of 10 million Xbox 360s.
Movie studios Disney, Fox, Miramax and MGM have sided with Sony's Blu-ray technology; Universal and Warner Bros. have chosen to produce movies in Toshiba's HD-DVD format. Paramount and Warner Home Video are releasing movie titles in both formats, an expensive undertaking when consumers are reluctant to buy either. New Line Cinema has put off releasing titles on the new DVDs until next year.
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