Toshiba Corporation' (OTC: TOSBF) promotion of its HD DVD format as the successor to DVD is seen as coming to an end. HD DVD and Sony Corporation's (NYSE: SNE) Blu-ray format both offer superior sound and audio quality as well as total data capacity compared to DVDs, but they were fighting eachother to become the accepted standard in what amounted to an updated version of the Betamax versus VHS war of two decades ago.

Originally the battle was seen as a stalemate with no clear edge for either HD DVD or Blu-ray technologically or from industry support, but this changed rather abruptly in the last few weeks with Warner Bros. Studio announcing it will only release movies in Blu-ray followed by Wal-Mart Stores (NYSE: WMT) decision to stock only Blu-ray movies and players. This left Dreamworks Animation Studios, Universal Studios and Microsoft Corporation (NASDAQ: MSFT) as the only major backers of HD DVD.

Though about one million stand-alone disc players have been sold for each format, the inclusion of a built-in Blu-ray player in the Playstation 3 was seen as a major gamble that may now pay-off for Sony. The entire movie market is also anxious to see a format winner decided as consumers are hesitant to buy either standard when there is a chance the equipment and discs will become obsolete.

Toshiba has not made an official announcement saying it will discontinue its HD DVD format, but an anonymous insider at the company says the anticipated move will likely come at a meeting tomorrow. Despite having sunk billions of dollars into the format, Toshiba's stock responded positively to the speculation because with HD DVD all but dead investors want to see the company cut its losses and instead move money into areas of its core competency such as computer chips, especially flash memory.

So, who are the winners and losers in Blu-ray's victory? Well, Sony is the most obvious big winner as it owns the format's technology and its PS3 is seen as getting a sales advantage because it includes the player. Indirectly, all movie studios and retailers will benefit as consumers are much more willing to invest in a new technology once it becomes the standard. The biggest loser is Toshiba, but the extent of the loss will really be determined by how the company rebounds and invests its newly freed capital - after all, Sony lost the last standard battle with its Betamax format but it not only survived but thrived.

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