Microsoft to pull out of HD DVDs

Microsoft Corp plans to stop making HD DVD players and cut the price of existing supplies by more than half after the leading promoter of the high-definition video format conceded defeat to Sony Corp's Blu-ray last week.

"From tomorrow, we will cut the price to $49," said a spokeswoman for the Redmond, Washington-based company. Microsoft's Xbox 360 game console includes a standard DVD player, and customers can buy an HD DVD machine to use with the console at $119.99 through retailers such as Amazon.com.

Microsoft, the world's largest software maker, was part of a group led by Toshiba Corp supporting the HD DVD standard. Tokyo-based Toshiba on Feb 19 abandoned its HD DVD business after the Blu-ray technology received support from major Hollywood studios including Warner Bros. Entertainment in the media industry's largest format war since VHS beat Betamax in the 1980s.

"It will not have a big impact because we don't sell HD DVD with the Xbox 360, only as an add on," the spokeswoman said.

The Xbox 360 trailed Sony's PlayStation 3 and Nintendo Co's Wii in US game-console sales in January, according to researcher NPD Group Inc.

Sony includes a Blu-ray disc player in its PlayStation 3 game console.

Agencies

(China Daily 02/26/2008 page17)