"In some respects, this new technology extends that problem," Rubin argued. By potentially allowing both formats to prosper, a final resolution could be further away, he suggested.

During a panel discussion on the problem at the Storage Visions conference in Las Vegas, market analysts generally agreed that one format would eventually become dominant, even if a dual-format solution was available.

"Generally, the hybrid solution only lasts a while," said Krishna Chandler, senior analyst for iSuppli. "One format may collapse eventually."

While LG's plans to release a dual-format Blu-ray/HD-DVD player at CES this week have attracted much attention, Warner Bros' development of a dual-format distribution disc might ultimately be more important, Rubin said: "To stock two versions of every title is very onerous."

Despite the problems, the shift to a hybrid solution was met with enthusiasm by some participants. "Consumers are going to say 'It's about time'," said Tom Coughlin of Coughlin Associates. "Devices that can read multiple formats will make the next generation happen much faster."

Coughlin noted that the high price of current players had also held off many purchasers, a theme picked up by other panellists. "The most important specification in consumer products is price," said Jim Porter, president of DiskTrend.

That might not be a major obstacle, Rubin suggested. "We saw in the DVD recording format wars that multi-format solutions sold at a premium, but they still took significant market share."

Another possible dampener for the market may be that DVD recorders for lounge room use -- an obvious target for either hi-def format -- aren't yet a mainstream item. "We really haven't seen the market for DVD recorders take off the way the market had expected," Rubin said.

However, the shift towards the new formats could spell good news for hard drive manufacturers. "Blu-Ray and HD-DVD are really going to drive storage requirements," said Thomas Wendt, CTO of Sherwood Information Partners. "Consumers are going to want even crisper, clearer content than ever before."
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