The rival HD-DVD technology is likely to survive as a PC standard, but Blu-ray will dominate in the market for standalone players and recorders. According to this report, the standards battle reflects increased polarization between alternative visions of the digital home, PC community led by Intel and Microsoft on one side and Sony and the other consumer electronics majors on the other.
"For all the talk of a unified digital home, deep divisions still remain," notes David Mercer, Principal Analyst at Strategy Analytics. "Billions of dollars of revenue are at stake as PC companies battle with the consumer electronics industry for control of the digital home media server. DVD's replacement will play a critical role in determining the success or failure of each group."
The report highlights the importance of next generation game consoles in the outcome of the Blu-ray/HD-DVD conflict. The success of Sony's new PlayStation console, the PS3, will ensure the dominance of Blu-ray as a high definition video content carrier.