Toshiba to delay HD DVD player launch

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TOKYO (Reuters) - Japan's Toshiba Corp. (6502.T) said on Tuesday it will delay the year-end Japan launch of its next-generation HD DVD players to address copy protection issues, potentially undermining its advantage as the first supplier to put such machines on the market.

The Japanese company had said in September the domestic launch might be postponed until after December. A spokesman for Toshiba said it would continue to push for a U.S. launch in the first quarter of 2006, most likely some time between February and March.

Toshiba said in a statement it would not launch the products until the last details on copy protection management systems, called AACS, or advanced access content system, were finalized.

"I cannot say when the AACS issues will be resolved," the spokeswoman said. "But it's hard to think the launch in Japan will come after the U.S. launch."

Toshiba and Sony Corp (NYSE:SNE - news). (6758.T), leading rival camps, have waged a three-year battle to have their different standards adopted for the new DVDs, which promise much greater capacity for high-definition movies. Toshiba, along with NEC Corp. (6701.T) and Sanyo Electric Co. (6764.T), has been promoting HD DVD, while Sony and Matsushita Electric Industrial Co. (6752.T), the maker of Panasonic brand products, have been developing a technology known as Blu-ray.

The Blu-ray DVD group said in November it planned to roll out a high-definition disc format in spring 2006, and that members of the consortium led by Sony would unveil specific launch plans at the Consumer Electronics Show (CES) in January.

http://news.yahoo.com/s/nm/20051213...SkjtBAF;_ylu=X3oDMTA5aHJvMDdwBHNlYwN5bmNhdA--
 
PCWorld.com Wednesday, December 14, 2005:

Toshiba Hints at HD-DVD Delay

Copy-protection slows development, but first player is still expected to debut at CES.

Martyn Williams, IDG News Service
Wednesday, December 14, 2005
Toshiba will likely delay the commercial launch of its first HD-DVD player because a group in charge of the copy-protection system for the format has yet to complete its work, the company has said.

Toshiba is the main backer behind the HD-DVD format, which uses blue lasers to enable the storage of up to 15GB of information on a half-inch optical disc. HD-DVD and a competing format, Blu-ray Disc, are vying to replace DVD as the de facto optical disc standard for high-definition content and movies.

In the anticipated fight between the two formats, an early launch of HD-DVD was one of its trump cards. Blu-ray Disc isn't expected to be available until sometime in 2006 and so a delay in Toshiba's launch plan could affect its chances of securing wide consumer support before Blu-ray Disc is launched.


Needs AACS spec

Toshiba said design work on its first HD-DVD player is complete and factories stand ready to produce the players, but the company is waiting on version 1.0 of the AACS (Advanced Access Content System) copy protection system.

"Because the DVD Forum has adopted AACS as an integral part of the HD-DVD format, Toshiba will launch its HD-DVD products only after AACS is finalized," the company said in a statement. "Toshiba plans to launch HD-DVD players and notebook PCs with HD-DVD drives in Japan promptly following the implementation of AACS into hardware and software products."

The statement stopped short of saying HD-DVD products wouldn't be available in Japan before the end of this year as planned, but with about two weeks to go before the end of the year time is running short.

A delay would be the second for HD-DVD. A year ago, the format backers promised commercial availability of players in both Japan and the U.S. before the end of 2005. Toshiba earlier this year pushed back the U.S. launch until sometime in the first quarter of 2006.

The U.S. launch remains on track and more details are expected to be provided at January's Consumer Electronics Show in Las Vegas.


Delay Speculation

"Toshiba didn't have any choice because they don't want to launch even one player commercially that doesn't have a secure foundation to it," said Richard Doherty, research director at The Envisioneering Group.

"AACS was introduced to the public at [the National Association of Broadcasters show] in April as version 0.9 with much fanfare and promise that it would be at 1.0 soon," he said. "The same was said at a show five weeks ago. I think the commercial sector would like a decision very soon."

"The real finger should be pointed to AACS to ask why it takes nine months for them to come up with this standard," Doherty said.

A spokesperson for the AACS group could not immediately provide details about when version 1.0 might be approved.

AACS is made up of a number of companies from the electronics and content industries. The group's founders include IBM, Intel, Microsoft, Matsushita Electric Industrial (Panasonic), Sony, Toshiba, Disney, and Warner Bros.
 

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