HD-DVD Will Jump to Early Market Lead, Analysts Say

OYSTER BAY, N.Y. — Technology market research firm ABI Research predicts that HD-DVD will outsell Blu-ray by a 2.5-to-1 ratio this year. The firm attributes this headstart to the earlier release date and cheaper price of HD-DVD, which debuted in the U.S. on Tuesday.

Competing DVD technology Blu-ray, backed by Sony, is expected to enjoy a huge bump in market share when the Japanese electronics giant ships its Playstation 3 gaming console. Sony had sold more than 100 million units by the end of 2005. The other situation that plays into Sony’s favor is its close ties to movie studios.

However, the studio support is not definite according to ABI’s Vamsi Sistla, director of broadband and multimedia research, but is “based on the perceived size of the market for a particular technology,” he said. “They don’t really care what technology is used as long as it meets their copyright protection needs and enjoys support from the vendor community.”

With the forthcoming battle between two high-powered electronics giants, who wins?

“Retailers such as Amazon, Best Buy and Wal-Mart, who will carry whatever sells,” will come out on top said Sistla.

In the adult arena, Digital Playground announced earlier this year that it would release movies for Blu-ray, while Vivid CEO Steve Hirsch said his company would put out both Blu-ray and HD-DVD content.

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