For three years the two firms have been heading up separate groups made up of various technology companies, with each supporting a different format that was expected to create the next-generation DVD. Sony had thrown its weight behind the so-called Blu-ray discs, which boast a higher capacity than the Toshiba-backed HD-DVD technology.
Both disc formats are said to offer better quality audio and video than the existing DVD, and may provide more space for interactive elements such as games. This is because they use a blue laser, which has a shorter wavelength than the red lasers used in current DVD equipment, allowing discs to store data at higher densities.
The two groups began talks to collaborate on a hybrid DVD system in April amid fears of a costly war and in a bid to promote growth in the industry, which has been hampered in recent months by an increase in digital piracy. It is hoped the new disc technology will offer better encryption against this threat.
However, according to the Japanese daily paper Yomiuri, negotiations to create a single technology that would combine the expertise of both Sony and Toshiba, have now stalled after both groups failed to compromise.
The two companies are now keen to start pushing ahead with the scheduled launches of their own formats. Toshiba began mass producing HD-DVDs two months ago, and is hopeful that it will be ready to launch the new discs by the end of the year. Sony, which is planning to release its Blu-ray discs at the same time as its rival, is expected to put a Blu-ray disc drive in its new PlayStation 3 game console next year.
