Japan's Sony Corp. and Toshiba Corp. are in negotiations to end the three-year next-generation DVD format war by teaming together to create one universal format, according to various publications. The move is seen as a compromise to ensure a bigger market as well as a way for both firms to share costs.
Toshiba, with NEC Corp. and Sanyo Electric Co. Ltd., has been promoting a technology called HD DVD. Sony's Blu-ray technology is backed by a group including Dell Inc., Samsung Electronics Co. Ltd., Philips Electronics NV and Matsushita Electric Industrial Co. Ltd., maker of Panasonic brand products.
The high-definition DVDs will boast better picture quality to go hand in hand with HD TV sets as well as a bigger storage capacity.
Sony has suggested using Blu-ray's disc structure and HD DVD software technology, while Toshiba has presented the idea of using the HD DVD disc structure, which is closer to that of current DVDs, and employing Sony's multi-layer data-recording technology, business daily NIHON KEIZAI said.
Reports have already come out that the two companies have approached Walt Disney Co. and AOL Time Warner Inc. about the new unified format.