The decision by Warner Bros. to drop HD DVD in favor of Blu-ray Disc for high-definition movies has set the electronics industry abuzz. Announced on the eve of the Consumer Electronics Show, the move put a single question in the minds of thousands of industry-insiders heading to the show in Las Vegas: Could the high-definition format wars be over?
Since both formats launched they have been locked in a battle that pitted some of the industry's biggest consumer electronics companies against each other. Backing Blu-ray Disc has been Sony, Panasonic and Samsung, while HD DVD's main supporters have been Toshiba, Microsoft and Intel.
The battle also divided Hollywood and left consumers with a difficult choice: their favorite movies were likely split between the two formats and there was a risk the player they bought would become irrelevant. As a result consumers kept away from the formats and sales have been sluggish.
Warner's decision will give Blu-ray Disc an advantage in terms of content. With the move, five of the big seven Hollywood studios now back Blu-ray Disc with only two, Paramount and Universal, backing HD DVD.
The Warner announcement certainly put the HD DVD Promotion Group's CES plans in disarray. Within hours of the announcement, the group cancelled its scheduled Sunday-evening news conference and subsequent media interviews at CES.