Blu-Ray Versus Hd-Dvd: a Standards Battle in High-Definition Video
From 2003 to 2008, Sony and Toshiba waged a high-stakes war for control over the next generation video format.
Sony’s Blu-Ray technology was backed by a consortium that included Philips, Matsushita, Hitachi, and others.
Toshiba’s HD-DVD had the backing of the DVD Forum, making it the “official” successor to the DVD format.
Both companies lined up major movie studios and video game consoles to promote their standards (Sony’s Playstation 3 and Microsoft’s Xbox 360).
In January 2008, Time Warner’s announcement that it would support Blu-Ray instead of HD DVD triggered a chain reaction that collapsed the support for HD-DVD. Toshiba announced it would cease production of HD-DVD equipment in February of 2008.
Discussion Questions:
What factors do you think influenced whether a) consumers, b) retailers, or c) movie producers supported Blu-Ray versus HD-DVD?
Why do you think Toshiba and Sony would not cooperate to produce a common standard?
If HD-DVD had not pulled out of the market, would the market have selected a single winner or would both formats have survived?
Does having a single video format standard benefit or hurt consumers? Does it benefit or hurt consumer electronics producers? Does it benefit or hurt movie producers?
Many industries experience strong pressure to select a single (or few) dominant design(s).
There are multiple dimensions shaping which technology rises to the position of the dominant design.
Firm strategies can influence several of these dimensions, enhancing the likelihood of their technologies rising to
Sony’s Blu-Ray technology was backed by a consortium that included Philips, Matsushita, Hitachi, and others.
Toshiba’s HD-DVD had the backing of the DVD Forum, making it the “official” successor to the DVD format.
Both companies lined up major movie studios and video game consoles to promote their standards (Sony’s Playstation 3 and Microsoft’s Xbox 360).
In January 2008, Time Warner’s announcement that it would support Blu-Ray instead of HD DVD triggered a chain reaction that collapsed the support for HD-DVD. Toshiba announced it would cease production of HD-DVD equipment in February of 2008.
Discussion Questions:
What factors do you think influenced whether a) consumers, b) retailers, or c) movie producers supported Blu-Ray versus HD-DVD?
Why do you think Toshiba and Sony would not cooperate to produce a common standard?
If HD-DVD had not pulled out of the market, would the market have selected a single winner or would both formats have survived?
Does having a single video format standard benefit or hurt consumers? Does it benefit or hurt consumer electronics producers? Does it benefit or hurt movie producers?
Many industries experience strong pressure to select a single (or few) dominant design(s).
There are multiple dimensions shaping which technology rises to the position of the dominant design.
Firm strategies can influence several of these dimensions, enhancing the likelihood of their technologies rising to