Toshiba Delays Launch of HD DVD Players

[akrako1]

http://apnews.excite.com/article/20050930/D8CU8S302.html

Toshiba Delays Launch of HD DVD Players

Sep 29, 8:59 PM (ET)

By PETER SVENSSON

NEW YORK (AP) - In an apparent tactical retreat in the high-stakes battle for the next generation of video discs, Toshiba Corp. has delayed the U.S. launch of the first players supporting its HD DVD format.

Instead of being available late this year, the players will launch next year, probably in the first quarter, said Toshiba spokeswoman Jodi Sally.

That brings the launch of the HD DVD closer to the expected U.S. debut of its main competitor, the Blu-ray disc, which is backed by Sony Corp. (SNE)

Sony's next-generation videogame console, the PlayStation 3, is expected next spring and will read Blu-ray discs.

The HD DVD delay is due to marketing considerations, not manufacturing problems, Sally said. The consortium behind the disc wants to avoid repeating 1997's slow launch of the DVD, for which only a few titles were initially available.

Studios and manufacturers also want more time to develop interactive features like games, extra audio tracks and Internet tie-ins.

"The studios as well as the hardware manufacturers feel that to drive consumers to the HD DVD and create the demand, we have to offer a lot more than just the high-definition picture quality," Sally said.

The first HD DVD players are expected to cost less than $1,000.

Toshiba still expects to sell the first players in Japan later this year.

Apart from Toshiba, the HD DVD is backed by Universal Studios and Warner Bros. Earlier this week, Intel Corp. (INTC) and Microsoft Corp. (MSFT) also threw their weight behind it.

The Blu-ray is backed by Apple Computer Inc. (AAPL), Hewlett-Packard Co. and Dell Inc. (DELL), along with a variety of other tech companies and studios.

[waheed]

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