MICROSOFT, INTEL SIDE WITH TOSHIBA’S FORMAT FOR HD DVD

Microsoft Corp. and Intel Corp., the world’s two largest technology companies, will support Toshiba Corp.’ s format for high-definition DVDs in a setback for Sony Corp.’ s competing Blu-ray standard. Microsoft, the largest software maker, will make products for Tokyo-based Toshiba’s HD DVD format and Intel will make semiconductors for HD DVD players, the companies said yesterday in a joint statement. Sony and Toshiba are gathering support for their formats from computer makers and movie studios as part of an effort dominate the US$26-billion U. S. market for DVDs and players. The two sides failed in May to combine the standards, setting up a battle that echoes the fight between Sony’s Betamax video format and VHS. Gaining the support of companies such as Redmond, Wash.-based Microsoft and Intel may help Toshiba’s HD DVD become the standard. “Having two formats

is a bad thing,” said Adi

Kishore, director of

media and entertainment at Yankee Group, a

Boston- based

research company. “From the

consumers’ perspective this is

going to be very

frustrating.” Both

technologies offer better picture quality, greater recording capacity and improved copyright protection. HD DVD discs have about four times the capacity of standard DVDs, while Blu-ray discs have up to five times more storage.