Toshiba's XDE DVD Player: A Threat to Blu-ray?

[Dashken]

Sai... again?

What exactly is Toshiba thinking? Not too long ago, the company lost the high-def battle, shutting down its HD DVD business. Sony's Blu-ray was declared the "winner," and everyone seemed to accept that standard DVD was on a slow, steady decline. What we didn't realize back in January was that Toshiba may have been down but it certainly wasn't out of the DVD mix. Yes, Toshiba's now in the deep end of the pool, dog-paddling like crazy with a brand-new DVD player technology, trying to prove that the DVD standard can stay afloat indefinitely.

Most people I've spoken to dismiss Toshiba's new XDE (eXtended Detail Enhancement) high-def technology as fakery and a minor speed bump in the road to Blu-ray disc and video download dominance. They're probably right.

On the other hand, these upscaling, image-enhancing hybrid players will, at $149, reportedly cost hundreds less than the current crop of Blu-ray players, and they promise to enhance the consumer's current DVD collection. According to Toshiba, the technology sharpens the contrast, improves colors, and will "breathe new life into your DVDs."

Suddenly, Toshiba is a very savvy (dare I say cunning?) company with a potential consumer electronics hit on its hands.

As I've mentioned before, Blu-ray players are still way too expensive, and Sony is still struggling to explain to consumers why it's a must-have technology. What's more, IP-based Video on Demand (VoD) is surging, thanks to set-top players from Roku and Apple and movie downloads via the Sony PS3 and the Microsoft Xbox 360. Consequently, VoD could become a relevant home DVD competitor in the next few years. And that's why Sony should be worried about Toshiba's latest DVD technology.

Consumers, on the whole not the most discerning bunch when it comes to quality, could very well be charmed by Toshiba's promises of 1080p images and enhanced color and image quality from their existing DVD collection. For consumers it's a win-win situation. They get high-def at a sub-$200 price that should look good on any real HDTV set, and they save even more money by not having to replace their DVD collection.

The X-factor here, naturally, might be the movie studios. If they stop making standard DVDs in favor of Blu-ray only, it's game over for Toshiba and XDE. On the other hand, Blu-ray's slow rise leaves the door open for crazy ideas like this. According to a recent report by Futuresource Consulting, Blu-ray media accounts for roughly 5 to 6 percent of all DVD purchases. Futuresource projects that U.S. consumers will buy some 45 million Blu-ray discs by the end of this year, which is a 400 percent increase over last year. It sure sounds as if Blu-ray is on the road to dominance. However, when a title sells well, the Blu-ray sales still account for only about 10 to 12 percent of total sales. That's good growth but not enough for Sony and other Blu-ray partners to bury consumer appetite for standard DVDs and DVD players.

The other day, Executive Editor and Reviews Czar Dan Costa suggested to me that Toshiba should simply give up this nonsense and admit defeat. Sure, Toshiba lost the high-def war, but the company understands the opportunity that exists to attract consumers who own massive DVD libraries and still don't comprehend why they should pay almost $500 for a player that needs new discs to reach its full potential. Plus, Toshiba gets to make Sony's life a little bit harder. I'm sure Toshiba would never admit to this, but if these XDE players sell even marginally well, they'll exist as a thorn in Sony's side and be one more reason why people might not switch to Blu-ray. In fact, it may buy consumers enough time to skip Blu-ray altogether and jump all the way to VoD boxes, which, by then, should be offering new-release HD videos. Toshiba will surely enjoy that.

Realistically, consumers may prove me wrong and call out XDE for what it is—a marketing ploy wrapped around an itty-bitty technology innovation. Still, no matter the outcome, it's fun to watch Toshiba splashing around in the DVD pool.

Source: Toshiba's XDE DVD Player: A Threat to Blu-ray? - Columns by PC Magazine