The fact is, one format has to make major headway by this holiday season. If one format (in this case, Blu ray) were able to get everyone on board one team, that format would have a shot at survival. MS knows this and (I think) plans for both formats to fail in the long run. Again, if one format doesn't have a considerable lead by this holiday season, then people will just wait for the terabyte discs in 09. No one wants to purchase a format with no idea which one will be around. People will stick with DVD till 09.
Sony is banking a lot on this media medium. Toshiba is as well, but they're not in the same overall financial trouble that SONY is. Toshiba can hold out, lose this war and still survive. Sony can easily survive despite a loss as well, but it will hurt. Their last hope is to combine the teams before this holiday and before the terabyte discs hit the market.
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