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The HD DVD format has been taking one hit after another and the sales have been plummeting. The trigger was Warner Home Video’s decision to become Blu-ray exclusive. HD DVD player sales went down and despite severely reduced prices, Blu-ray grew stronger and stronger. The very latest blow was when both Best buy and Netflix announced that they would remain Blu-ray exclusive, on customer demand.

Reliable sources now claims that Toshiba, the leader of the HD DVD pack, has realized that the battle is lost and will make an official statement in just a few weeks. They claims that Toshiba and HD DVD will withdraw from the market.

”But in the end, sources say, the substantial loss Toshiba is incurring with each HD DVD player sold — a figure sources say could be as high as several hundred dollars — coupled with a series of high-profile retail defections has driven the company to at last concede defeat.”

Toshiba hasn’t commented on the article, but has made it quite clear that it is keeping a close eye on the market and what the customers want.

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