Blu-ray officially won the high-def format war, and now everyone who was burned is licking their wounds. Toshiba announced it will lose $1.1 billion in fiscal 2007 due to losing the format battle.
That's twice the loss it projected earlier. When Warner Bros. decided to distribute exclusively in Blu-ray in February, Toshiba decided to get out of the business of making HD DVD players, prompting Wal-Mart to sell exclusively Blu-ray.
Now the question is--how much will Sony make now that its Blu-ray format has won the war? And then there's the $20 billion home video market that's at stake for the movie studios. DVD sales growth has been on a serious decline. Now that a format has won, will people rush to the big box retailers to buy new players and discs? What I'm wondering is, will the economic slowdown keep this new business from taking off?
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