Sony Corporation shares rose by 0.9% on the Tokyo Stock Exchange today, following Time Warner’s shock announcement that the studio is to exclusively support Sony’s high definition Blu-ray format.
Shares of the electronics giant rose to JPY 5,840 at 12.44pm, while in contrast, Toshiba Corp., lead promoters of the HD-DVD format, dropped by 2.5 per cent resulting in its lowest dip in nine months.
Writing in an email to Bloomberg, David Gibson, an analyst with Macquarie Securities, commented: “It’s a game-changing event, game over for HD DVD”, adding, “Warner “is the industry leader, and other studios will follow.”
A Toshiba spokesperson later commented on the company’s disappointment with Warner’s decision, telling Bloomberg: “We will assess the potential impact of this announcement with the other HD DVD partner companies and evaluate potential next steps.”
As the largest distributor of DVDs worldwide, Warner Bros is responsible for the shipment of over 300 million units each year, and with the firm’s commitment to Blu-ray solidified, many believe that the high definition format war has all but been decided.
Source: Bloomberg