Wal-Mart picks Blu-ray in HD DVD disaster

By Franklin Paul

NEW YORK (Reuters) - Wal-Mart Stores Inc 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-backed HD DVD and Sony Corp's 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 and online video rental company Netflix Inc defected to the Blu-ray camp earlier in the week.

Next-generation DVDs and players, boasting better picture quality and more capacity, were expected to help revive the $24 billion global home DVD market. But Hollywood studios had initially split their alliances between the two camps, meaning only certain films would play on a consumer's DVD machine.