IS SONY SIGNALING END OF WAR OVER HD VIDEO?

In the first hint that he may be reconsidering whether to continue the battle with Toshiba over high-definition video, Sony chief Howard Stringer said Wednesday that the format battle between the two companies has become "mostly a matter of prestige." In a speech in New York Thursday night, Stringer also suggested that the battle over Sony's Blu-ray system and Toshiba's HD DVD "doesn't mean as much as all that." At one time, he suggested, it might have been possible to unify the two formats, and if time travel were possible he would try to do that now. He decried the decision of Paramount/DreamWorks to sign an exclusive deal (worth a reported $150 million) to release films exclusively in the HD DVD format. "We were trying to win on the merits, which we were doing for a while, until Paramount changed sides," Stringer said.

Customers aren't the only ones frustrated with the high-definition format wars—Sony CEO Howard Stringer is reaching the end of his rope as well. Blu-ray, which is backed by Sony, was doing well up until recently and winning the war based on merits, Stringer said at an event in New York. That is, up until movie studio Paramount decided to "change sides" and go exclusively HD DVD in August. Things have apparently become more difficult since then, and the high-profile CEO is showing signs of wear.

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Indeed, without some sort of compromise, it doesn't appear as if the battle will be over any time soon. The two sides have been going back and forth in the media as to who has been "winning" at any given time, with Sony taking a lead in overall player sales, but HD DVD winning out when it comes to standalone players (most of Blu-ray's players come as part of the PS3 console). The rest of the market has been forced to take sides in many cases too, with Blockbuster and Target giving points to the Blu-ray camp while HD DVD remains more popular among European movie studios. The stream of news about little victories between the two is nearly endless—and "little" they are, as the market is still so small that just the changing of the wind can tip the scales in either direction.

Market research firm Forrester Research recently revised its stance on the Blu-ray versus HD DVD deadlock, saying that it was sure to continue well into 2009, if not longer. As a consumer, that news is just plain dreadful, and for a manufacturer with hands in the game, probably even worse. A large majority of consumers are still hesitant to buy players for either format. And with customers not spending money, neither camp will come out on top. Stringer appears to have finally come to that realization—will Toshiba hear his cries and come a-knockin'? We'd love to be wrong on this one, but we just don't see it happening now. It's just too late.