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Blu-ray vs. HD DVD: The battle rages on

If you're not up on the ongoing face-off between Blu-ray and HD DVD, here's a quick synopsis on what is becoming the latest technology battle since that long ago technology struggle between VHS and Betamax:

Blu-ray and HD DVD are two next-generation DVD formats fighting to win over consumers. Electronics giant Sony Corporation (NYSE: SNE) developed the Blu-ray format, and is using its Playstation 3 video game console to showcase it. Others supporting Blu-ray include Apple Inc (NASDAQ: AAPL) and Hewlett Packard Company (NYSE: HPQ). HD DVD was developed by the DVD Forum, and is being championed by Microsoft Corporation (NASDAQ: MSFT), Toshiba Corporation (OTC: TOSBF) and Intel Corporation (NASDAQ: INTC), among others. The main difference between the two is that the Blu-ray format can hold more data, while the HD DVD format is less expensive.

The latest is that Target Corporation (NYSE: TGT) has decided to sell only Blu-ray players in its stores, although the retailer was non-committal about its decision, saying "we are not proclaiming one format versus the other as the preferred consumer technology, and software will continue to be available to our guests in both the Blu-ray and HD DVD format." Target's decision follows a similar one by Blockbuster inc (NYSE: BBI) to offer only Blu-ray titles when it expands its HD offerings this fall.

The momentum currently appears to favor Blu-ray, which is also winning the content provider battle. Many Hollywood studios are either releasing solely in Blu-ray format or on both formats. Two of the summer's blockbusters -- Spider-Man 3 and Pirates of the Caribbean: At World's End -- will both be Blu-ray exclusives. Only General Electric's (NYSE: GE) Universal Studios is exclusively supporting HD DVD.

Although the HD DVD camp claims it's not worried, pointing to other retailers including Best Buy Inc (NYSE: BBY) and Circuit City Stores Inc (NYSE: CC) who carry their player, they should think again. This battle will be won by the content available on them, and not by the amount of shelf space given the players. Target and Blockbuster are pointing the way to Blu-ray, and that is clear indication that the choice may very well be Blu-ray.

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Last updated: August 07, 2008: 08:27 PM

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