Hey, kids--are you ready for another DVD format war? Straight outta London comes HD VMD (that's for "versatile multilayer disc"), another high-def disc format vying for our love. Like HD DVD, HD VMD's main selling point is that its media has a lower price point than Blu-ray media. However, the cost savings is a result of the fact that, while HD VMD claims to offer similar video quality to Sony's format, it uses a red laser rather than blue--that's the same color used on standard DVD players. A standard VMD player costs around $199, compared to Blu-ray players' prices of $300 and above.

New Medium Enterprises, however, is making it clear that its intention is not to take on Blu-ray, but rather to find its own niche in the market. "We do not intend to take on Blu-ray," NME's vice president and product development manager Shirly Levich told The New York Times. "We see VMD as a natural extension of mass market DVD product enhanced to HD capabilities. We shall not rekindle the format war."

HD VMD is set to be available through Amazon in five weeks or so. The company has yet to strike a similar distribution deal with another retailer, such as Best Buy and Amazon. At the moment, customers can pick up only 17 movies on the format in the States, many of which will be largely unrecognized by moviegoers.

Rather, the company sees China, India and Spain, Australia, China, India, Central Europe, Russia, and Scandinavia as more likely potential markets, citing the low cost of the technology, which lets NME market players for under $90.