The battle for the next generation of DVD technology ramped up June 27 when Toshiba – the creator and developer of the HD-DVD format – and Microsoft announced a partnership to develop HD-DVD players together.
"We are very excited to take our long-standing partnership with Microsoft to the next level," said Toshiba chief executive Atsutoshi Nishida at the joint announcement. "Our companies have worked together since Toshiba launched the world's first laptop PC back in 1985, and we enjoy a relationship rooted in mutual respect and understanding. We look forward to extending the scope of our relations to encompass HD DVD, a major driver of the next-generation consumer electronics."
This partnership especially puts the Redmond, Washington, software giant squarely against Apple Computer, which backs Sony's competing Blu-ray next-gen DVD technology. The companies said they would work together on HD-DVD players supporting Windows software and developing so-called tablet personal computers and other mobile devices.
The Microsoft-Toshiba announcement followed a break in talks between Toshiba and Sony on the question of how to avoid a next-gen DVD war similar to the one between the VHS and Betamax videocassette format in the late 1970s and early 1980s.
"Microsoft values our strong relationship with Toshiba, a company we admire for its long-standing commitment to innovation," said Microsoft mastermind Bill Gates at the joint announcement. "This agreement demonstrates our desire to share our innovations with other companies in ways that promote the spread of new ideas—and benefit customers by accelerating the development of exciting new products."
Microsoft and Toshiba also agreed to increase their collaboration on the iHD interactive DVD format. The two companies had agreed in April to cross-license each other and promote swapping innovations that each company develops, a deal covering them in computer and digital consumer areas alike and enhancing the two companies' longtime traditions of heavy investment in research and development, the joint announcement said.
The Microsoft-Toshiba announcement came after a season in which it sometimes seemed as though Sony's Blu-ray was getting the proverbial upper hand in the next-gen DVD format battle.
Blu-ray is believed to be the superior technology while HD-DVD is believed to be the more cost-effective. Hollywood studios have divided on which format to support. Blu-ray also found more acceptance among the computer game community when Electronic Arts and Vivendi Universal Games, in January, came out in support of Blu-ray for the next PlayStation console.
