UPDATE 2-Wal-Mart, rivals pick Blu-ray in HD DVD disaster

(Recasts; adds analyst, Blu-ray comment)

By Franklin Paul

NEW YORK, Feb 15 (Reuters) - Wal-Mart Stores Inc (WMT.N: Quote, Profile, Research, Stock Buzz) on Friday abandoned the flailing HD DVD format, potentially ending a war over next-generation DVDs as it joined Best Buy and Netflix in supporting rival Blu-ray technology.

The format war between Toshiba Corp (6502.T: Quote, Profile, Research, Stock Buzz)-backed HD DVD and Sony Corp's (6758.T: Quote, Profile, Research, Stock Buzz) Blu-ray, often compared to the Betamax-VHS battle in the 1980s, has slowed the development of what is expected to be a multibillion dollar high-definition DVD industry.

It also has been a thorn in the side of retailers, which have had to commit shelf space to devices from both camps even as they field complaints from customers frustrated that some films come out in HD DVD while others are released in Blu-ray.

Wal-Mart, the world's largest retailer, announced the move as a phase-out at 4,000 U.S. Wal-Mart and Sam's Club stores by June, saying it was responding to consumer preference.

Wal-mart's on-staff movie and gaming blogger put the future of HD DVD in stark terms.

"So ... if you bought the HD player like me, I'd retire it to the bedroom, kid's playroom, or give it to your parents to play their John Wayne standard def movies, and make space for a BD (Blu-ray disc) player for your awesome Hi Def experience," Wal-Mart blogger Susan Chronister wrote in a posting.

Consumer electronics chain Best Buy Co Inc (BBY.N: Quote, Profile, Research, Stock Buzz) and online video rental company Netflix Inc (NFLX.O: Quote, Profile, Research, Stock Buzz) defected to the Blu-ray camp earlier in the week.