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There arose a format war between the Blu-ray Disc and HD DVD optical disc in 2005. The two failed o agree on how to produce and distribute their next generation of DVDs. Production of the next-generation DVD format has to come in single-layer and dual-layer formats. This meant that HD DVD, were to produce 15GB and 30GB while for Blu-ray was 25GB and 50GB. The launching of HD DVD was expected in 2005 but shifted to the first quarter of 2006, about the same time Blu-ray where to launch theirs.
In making their DVDs, HD DVD uses iHD technology that Microsoft and Toshiba have worked on. For this reason Toshiba backed up HD DVD. The Blu-Ray disc was supported by a large number of electronics companies and also computer companies because of producing the 50 gigabytes of storage DVD. In addition, Sony was committed to support it thereby strengthening its market against the HD DVD.
In early 2008, many electronic companies, studios and DVD distributors shifted to use of Blu-ray disc. Due to this, Toshiba officially announced that it would stop the development of the HD DVD players on February 19, 2008. This led to the end of the format war between Blu-ray and HD DVD. This move led to a success of the Blu-ray but Toshiba should have intensified their production and produce a higher capacity DVD to win over the Sony.