China Electronics Wholesaler

Japanese stores take HD DVD off shelves: officials

Fri Feb 22, 2:14 PM ET

TOKYO (AFP) - Major Japanese electronics stores have stopped selling HD DVD machines after their maker Toshiba conceded defeat to Sony's Blu-ray in the battle to set the next-generation DVD standard. ADVERTISEMENT

Toshiba Corp. announced Tuesday that it was throwing in the towel after Blu-ray won crucial support from leading Hollywood studios and large US retailers.

The decision banishes HD DVD to the way of Betamax, the relic once marketed by Sony Corp. that lost out to JVC-developed VHS as the standard for videocassettes in the 1980s.

As of Friday, six major Japanese electronics retailers -- Yodobashi Camera, Kojima, Nojima, Edion, Best Denki and Joshin Denki -- had suspended all sales of HD DVD, company officials said.

The chains are in talks with Toshiba for the electronics giant to take back its stock either fully or partially.

Edion, which operates 1,000 stores across Japan under various names, announced an offer for any customer who bought HD DVD hardware from Toshiba to switch for a Blu-ray machine sold by Sony, Panasonic or Sharp.

The offer is available only in March, with customers expected to pay any price difference if the Blu-ray machine was more expensive.

Some stores, notably the major chain Bic Camera, continue to sell, at a reduced price, HD DVD machines that can record television shows. HD DVD blank disks are expected to remain on the market.

Next-generation DVDs offer cinematic-quality images and multimedia features, but at a much steeper price than current DVDs.

Blu-ray swept 90 percent of sales of next-generation DVD recorders in Japan in the last three months of 2007, although HD DVD fared somewhat better in the US market where it was supported by software giant Microsoft Corp.

Toshiba said it has sold 30,000 HD DVD decks in Japan, accounting for only five percent of its HD DVD sales across the world.