HD DVD continues the fight

Next gen formats continue the war of attrition as the market waits for titles and PlayStation 3

Both HD DVD and Blu-ray have a problem. The stand-off between the two formats has resulted in the sworn enemy of every new technology; apathy. Despite the battle being the main focus of the recent IFA consumer electronics show in Berlin, the European launch of new Blu-ray and HD DVD players – with models from big names including Samsung and Toshiba respectively - was greeted with relative nonchalance.
And, what’s more, everybody’s still sitting on the fence. But although Blu-ray had undoubtedly the stronger showing at IFA and has the better launch titles, there are several factors that could swing things HD DVD’s way.

A case of costs

Speaking at IFA, a senior source at Microsoft told me why it was a no-brainer for the company to come down on the side of HD DVD. “We think the technology is evolutionary and the costs will always be relatively lower.” And what of the attempts to foist Blu-ray on the market? “You can force the system to try to force the costs down…but at some point someone’s got to pay for it. The question is, how much money can you be prepared to lose?
There’s certainly no doubt that HD DVD has a definite lead in terms of price point and manufacturing cost. The discs are cheaper to make, while doubts also remain about Blu-ray’s durability – the recording layer is protected by a wafer-thin 0.1mm coating compared to 1.2mm for a CD and 0.6mm for a DVD, even if manufacturers such as TDK have given out assurances about the durability of their coatings.

Better price points

And then there’s the players. Tosh announced its low end HD-E1 player for the Euro market will be available at around the €599 - €699 mark. HD DVD also has the advantage that it’ll be available relatively cheaply as an add-on for the Xbox 360, while Blu-ray could yet be a costly millstone around the PlayStation 3’s neck.
“The wildcard remains the Chinese because they will do HD DVD players,” said our source. “Of course Toshiba will probably never make a dime out of this – they might make some money on the royalties, but once the Chinese get hold of it, they will force the price way down. And that’ll be an issue in terms of the price differential [between HD DVD and Blu-ray] on the mass market.”
Sony’s big white hope remains the new PlayStation. Of course, due to component shortages – specifically those blue laser diodes – Sony has delayed launch in the PAL region until next March.
“The big question for Blu-ray is whether it becomes the saviour or the anchor for PS3,” said our source. “Of course it depends on getting the product out there and how much Sony is prepared to bleed. Right now, they don’t have the time to bleed.”