Report: Sony may have paid up to $400 million (U.S.) to Warner Brothers

WASHINGTON, TORONTO -- Howard Stringer made history in 2005 for being the first non-Japanese executive to take the helm at Sony Corp. But he may be better remembered as the one who won the high-definition war, erasing the stain on the electronics firm's image ever since it lost the videotape war two decades earlier.

Although celebrated yesterday, the victory was sealed last month when Sony swayed Warner Bros. to back Sony's Blu-ray technology and quit producing movies using Toshiba Corp.'s rival HD DVD format.

What remains a mystery is just how big a push Warner needed to pick sides. Analysts say Sony only prevailed following a heated bidding war against Toshiba, with the reward reaching as much as $400-million (U.S.). Neither side has confirmed the size of any bids or payments.

[From globeandmail.com: Stringer makes his mark]

$400 million is pocket change when compared to either Warner's or Sony's marketing budget for one year. Now think of a war of attrition, trying to sell people into picking one format or the other. That's up to ten miserable years blowing millions in advertisement, free discs with each drive bought, and Black Friday loss leader sales of drives. And no promise of resolution at the end of the ten years. For all we know, at the end of these 10 years we would either still have to figure out which disc to buy, or end up paying more for a dual mode disc. And let's not forget that Sony had the superior format (Betamax) the last time, yet there are still plenty of VHS tapes around (and now that I think about it, mini discs).

Blu-ray's day: Toshiba quits HD DVD - Gadgets- msnbc.com

And then, there was one ...

TOKYO - Toshiba said Tuesday it will no longer develop, make or market HD DVD players and recorders, handing a victory to rival Blu-ray disc technology in the format battle for next-generation video.

"We concluded that a swift decision would be best," Toshiba President Atsutoshi Nishida told reporters at his company's Tokyo offices.

The move would make Blu-ray — backed by Sony Corp., Matsushita Electric Industrial Co., which makes Panasonic brand products, and five major Hollywood movie studios — the winner in the battle over high-definition DVD formatting that began several years ago.

[From Blu-ray's day: Toshiba quits HD DVD - Gadgets- msnbc.com]

To kick-off the festivities, let's have Douglas Adams' Singing Dolphins Chorus:

So long and thanks for all the fish
So sad that it should come to this
We tried to warn you all but oh dear?

You may not share our intellect
Which might explain your disrespect
For all the natural wonders that
grow around you

So long, so long and thanks
for all the fish

The world's about to be destroyed
There's no point getting all annoyed
Lie back and let the planet dissolve

Despite those nets of tuna fleets
We thought that most of you were sweet
Especially tiny tots and your
pregnant women

So long, so long, so long, so long, so long
So long, so long, so long, so long, so long

So long, so long and thanks
for all the fish

(yeah)

So long and thanks for all the fish
So sad that it should come to this
We tried to warn you all but oh dear?

(oh dear)

Despite those nets of tuna fleets
We thought that most of you were sweet
Especially tiny tots and your
pregnant women

So long, so long, so long, so long, so long
So long, so long, so long, so long, so long

So long, so long and thanks
for all the fish

Gamerscore Blog : HD-DVD Statement from Xbox

Today's chapter of the HD-DVD saga is brought to you by some Baltimore-style damage control from Microsoft's Xbox team:

HD-DVD Statement from Xbox
We do not believe the recent reports about HD DVD will have any material impact on the Xbox 360 platform or our position in the marketplace. As we’ve long stated, we believe it is games that sell consoles and Xbox 360 continues to have the largest next-gen games library with the most exclusives and best selling games in the industry. We will wait until we hear from Toshiba before announcing any specific plans around the Xbox 360 HD DVD player. HD DVD is one of the several ways we offer a high definition experience to consumers and we will continue to give consumers the choice to enjoy digital distribution of high definition movies and TV shows directly to their living room along with playback of the DVD movies they already own.

[From Gamerscore Blog : HD-DVD Statement from Xbox]

In other words: HD-DVD is dead, yo. Don't expect any games published in HD-DVD, don't expect any more free movies when purchasing the Microsoft HD-DVD drive for the Xbox 360, and sure as hell expect the Xbox 720 (if we ever see it) to ship with either a current generation Blu-ray, or simply move on to pure online distribution channels.

Toshiba to exit HD DVD, end format war-NHK | Reuters

TOKYO (Reuters) - Toshiba Corp is planning to stop production of equipment compatible with the HD DVD format for high-definition video, allowing the competing Blu-Ray camp a free run, public broadcaster NHK reported on Saturday.

Toshiba is expected to suffer losses amounting to tens of billions of yen (hundreds of millions of dollars) to scrap production of HD DVD players and recorders and other steps to exit the business, Japan's NHK said on its website.

No one at Toshiba could be reached for comment.

[From Toshiba to exit HD DVD, end format war-NHK | Reuters]

Can you hear the screams? That's the thousands of people left holding the bag, starting with the people that got sucked into buying HD-DVD players by both Black Friday sales and by Microsoft cutting the price on the HD-DVD drive for the Xbox 360. Ouch.
The sad thing is I am still to watch a single HD-DVD drive in action. Only HD discs I have seen are Blu-ray demos at Best Buy.