Tech roundup: Blu-Ray to best HD DVD in format wars?
Reports that Toshiba will halt production of its high-definition video format leaves analysts declaring Sony the victor.
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A source at Toshiba confirmed an earlier report by public broadcaster NHK that it was getting ready to pull the plug.
"We have entered the final stage of planning to make our exit from the next generation DVD business," said the source, who asked not to be identified. He added that an official announcement could come as early as next week.
No one answered the phone at Toshiba's public relations office in Tokyo.
"There have been media reports that Toshiba will discontinue its HD DVD business," a Toshiba spokesman said.
"In fact, Toshiba has not made any announcement or decision. We are currently assessing our business strategies, but nothing has been decided at the moment."
But there's little doubt that the rumors have pleased investors. Bloomberg reports that Toshiba shares jumped 5.7 percent on the Tokyo Stock Exchange Monday, hitting a seven-week high. Sony's stock rose by 1 percent.
Whatever Toshiba decides, it is clear that support in the US for Toshiba's format has been eroding quickly. Wal-Mart, the nation's largest DVD retailer, announced Friday that it would stop selling HD DVD discs and machines in June. Earlier, Best Buy, the nation's largest electronics retailer, and Netflix, the largest online DVD rental service, each announced that they would be backing Blu-Ray.