NEW ALLIANCES IN NEXT-GENERATION DVD FIGHT

Tech giants Microsoft and Intel have picked sides in the battle over the standard format for next-generation DVDs. Both companies have sided with Toshiba's HD-DVD format in preference over the Blu-ray standard pushed by Sony and others. Microsoft and Intel believe that HD-DVDs are likely to become the dominant standard because they can be produced quicker and at less cost.

This move has not simplified matters "? other major players, including Dell and HP, are in the Blu-ray camp. Industry pressure to come up with one next-generation standard is increasing, as the shift to next-generation DVDs is seen as an opportunity to re-energize flagging DVD sales.

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