The move follows last week's announcement by Wal-Mart, the world's largest retailer, that it would no longer stock Toshiba's HD-DVD discs and players.

That decision followed a similar one last month from one of the largest content providers, Warner Brothers, putting strong pressure on Toshiba, which has been the driving force behind the HD-DVD format that is also backed by Microsoft and about a hundred other companies.

Toshiba stressed "no decision has been made", but added the company was "making various considerations about its business policy after Warner's decision and the announcements by Best Buy and Wal-Mart".

While from a technology point of view, the two formats have similar capabilities, HD-DVD's fate looks as if it will ultimately be sealed by retailers rather than technology.

Andy Parsons, chairman of the Blu-ray Disc Association US promotions committee, said recently "retailers have a tremendous impact on consumer preferences".

If Toshiba does pull out, the industry expects high definition DVD sales, which have been disappointing since their launch last year, to pick up, with only the Blu-ray format to support. Many consumers have been sitting on the sidelines, unwilling to commit to a format that may not last.

By: DocMemory
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