Format wars re-visited? (Blu-ray v HD DVD)

This year sees the launch of the Sony Playstation 3 (PS3). And like its predecessors it will boast better graphics, better games and according to reports it will take gaming to the next level (what ever that means!).

Driving the PS3 will be a completely new format, the third generation in optical media (CD was the first, DVD the second) known as Blu-ray. It is being developed by Sony and has various supporters such as Matsushita, Dell and most of the Hollywood studios.

However, like all things in life, there is competition. Another third generation optical media known as HD DVD, which is being led by Toshiba and counts Microsoft and Intel among its supporters. In fact, Bill Gates announced earlier this month that Microsoft are planning to launch a peripheral HD DVD drive which will plug directly into the recently launched XBOX 360.

So what are the differences between the two competing technologies? Essentially both media formats are manufactured in the same way as DVDs, two polycarbonate discs bonded together. Both "layers" can store data, but depending on the amount of data to be stored determines whether a Single Layer or Dual Layer disc is manufactured. Blu-ray has an initial capacity on a single layer disc of 25GB, HD DVD has a single layer capacity of 15GB. Using the second layer effectively doubles the capacity. From a manufacturing perspective it is easier and cheaper to make an HD DVD as an existing DVD line just needs to be updated. A Blu-ray disc will need to be manufactured on a purpose built Blu-ray line.

Both technologies are due to have players launched in Spring 2006 for the home entertainment market, although the expectation is that a Blu-ray player will be more expensive than an HD DVD player.

At the moment HD DVD certainly has the advantage over Blu-ray, purely because of its position in the marketplace, however - the backing for Blu-ray currently outweighs the backing for HD DVD, so are we going to see the VHS / Betamax format war again? Is there a market for the increase in definition for home entertainment, or is the real benefit of the technology going to come in the B2B Markets? Over the next 12 to 18 months, these are questions we will see answers to.


See also:
> Blu-ray Disc Association
> HD DVD Promotion Group

January 2006