HD DVD now the Highly Dead DVD

The fact that the PlayStation 3 console included a Blu-ray drive is one reason the format eventually won out. Sony Corp. sold 10.5 million PS3 machines since its 2006 debut.

But the real death knell for HD DVD was the last month's decision by Warner Bros. Entertainment to drop the format and release only Blu-ray discs and DVDs.

"That had tremendous impact," Toshiba President Atsutoshi Nishida said Tuesday in Tokyo. "If we had continued, that would have created problems for consumers, and we simply had no chance to win."

Warner joined Sony Pictures, Walt Disney Co. and News Corp.'s Twentieth Century Fox in shunning the HD DVD, leaving Universal and Paramount Studios in the HD DVD camp. Universal on Tuesday said it would "focus" on releasing Blu-ray discs, but did not say if it would cease putting out HD DVDs.

After Warner's announcement, Toshiba was initially defiant. It cut player prices and kept touting the format's benefits. But the bad news kept rolling in. Last week, Netflix Inc. said it would cease carrying rentals in HD DVD. On Friday, Wal-Mart Stores Inc. said it would stop selling HD DVD players and discs.

Even with the HD DVD out of its way, Blu-ray isn't likely to be the success that the DVD was, given the many viewing options consumers have.

The big advantage of the DVD over broadcast and cable has been that the viewer can choose when to watch what. But that advantage has been eroded by video-on-demand from cable companies, many of which are now in high definition. Comcast Corp., the country's largest cable company, plans to offer more than 1,000 high-def movies this year.

Just last week, Apple Inc. upgraded its Apple TV set-top device to enable downloads of high-definition rental movies from the Internet. Microsoft Corp.'s Xbox 360 game console also shows downloaded HD rentals.

"Blu-ray Disc has passed its first real test by beating HD-DVD," wrote David Mercer, an analyst at Strategy Analytics in London. "But a much bigger challenge now lies ahead if BD is to become as successful as DVD, and content owners, retailers and manufacturers must now demonstrate that they can work together to promote BD effectively."

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