Toshiba's decision to give way on the disk format was apparently made after examining cost issues related to the Sony technology. The merged format will make use of Sony's 0.1 millimeter Blu-ray disk technology with Toshiba's software in place for reading and writing from the disk and handling copyright protection. Toshiba's 0.6 millimeter HD-DVD disk technology will be dropped. The resulting technology will be offered as a new format. It's unclear at this point if the new format will adopt the Blu-ray or the HD-DVD name, or if something completely new will be used.
Sony announced late last year that the next generation PlayStation would make use of the Blu-ray format. The Nihon Keizai article reveals that, as part of the compromise, Blu-ray supporters Sony and Matsushita were demanding the highest possible storage space for future IT and game applications. This would suggest even though Blu-ray as it was known is gone, the new merged standard will end up serving as the format for PS3.
Expect further announcements later this week or at E3.
Edited by Xtrem, 10 May 2005 - 03:54 PM.