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Gartner analyst Hiroyuki Shimizu generated a bit of buzz Monday with a note published in the Gartner Semiconductor DQ Monday Report, a newsletter sent out to clients and journalists.

In it, Shimizu adopts what has become an increasingly popular stance: that the defection of Warner Bros. from the HD DVD to the Blu-ray camp during CES was a sign of the eventual demise of the HD DVD format.

Gartner is one of what I would call the "Big Four" analyst firms in our world (with IDC, NPD, and iSuppli). According to a Gartner spokeswoman, any published research represents Gartner's official position on a subject, so we can consider what Shimizu wrote to be an official statement of position by Gartner. Here's Shimizu's take, referring to the half-off price cuts made to the HD-A3 player in half ($299.99 to $149.99), and the price of the HD-A30 ($199.99) and HD-A35 ($299.99) players, which are both cheaper than their Blu-ray counterparts:



"While officially announced as price cuts, this move from Toshiba is an attempt to back up the HD DVD format after the loss of the Warner Bro.s [sic]movie studio. Warner's shift from producing in both formats to Blu-ray alone has left HD DVD with just Paramount and Universal as its major Hollywood supporters, both of which account for only 30% of all HD movies. The movement was sufficiently damaging as to force the HD DVD promotional group to postpone, and then ultimately cancel, its CES keynote session. There is still a lot of support for HD DVD as the de facto standard, from companies such as Paramount, Universal Studios and even Microsoft.

"However, Gartner believes that Toshiba's price-cutting may prolong HD DVD's life a little, but the limited line-up of film titles will inflict fatal damage on the format. Gartner expects that, by the end of 2008, Blu-ray will be the winning format in the consumer market, and the war will be over."

Short but to the point. Do you agree?

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Posted by: Wayne Robinson
February 10, 2008 7:01 PM

This format war is of special interest to me but I believed from the very beginning that Blu-ray was going to be on top. When Paramount dropped their Blu-ray support just before Christmas I thought they made a really bad judgement. Now that Warner Bros. is dropping their HD DVD later this year I think it's only a matter of time that the HD DVD supporters will no longer be able to afford any more of a price drop to save a dying format.


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