http://www.forbes.com/technology/ebusiness/feeds/ap/2006/07/13/ap2877740.html



Associated Press

Ricoh Tries to Bridge Dueling HD Formats

By HIROKO TABUCHI , 07.13.2006, 04:02 PM


Japan's Ricoh Co. said Thursday it will be ready to supply an optical
component that reads both HD DVD and Blu-ray discs next year - a move
that could diffuse the battle between rivals Toshiba and Sony over
next-generation DVD formats.

Toshiba Corp. and its allies have been pitting the HD DVD format against
Blu-ray, an alternative standard pushed by Sony Corp., raising fears of
a repeat of the VHS-versus-Beta battle over the format for video tape
recorders in the early 1980s.

Both HD DVD and Blu-ray technology can deliver dazzling high-definition
video and can store much more data than today's DVDs, but related
hardware has so far been incompatible.

Tokyo-based Ricoh's new component, however, uses a diffraction plate
designed to adjust the laser so that light focuses properly for each
disc format, allowing a drive to read all formats, according to company
spokesman Satoshi Aoki.

"Ricoh is the first in the world to announce this hybrid technology,"
Aoki said. "We believe it's groundbreaking."

The component will initially only read discs, though Ricoh hopes to
improve its laser so it writes in all formats, Aoki said.

The office equipment maker is presenting the technology at the
International Optoelectronics Exhibition outside Tokyo, which kicked off
Thursday. The company will be ready to deliver components to electronics
makers by the end of 2007, Aoki said.

Talk of the potential of a dual-format drive and hints of its
development by various companies have circulated for some time. And
though Ricoh can now claim a first-of-a-kind hybrid technology, some
analysts are skeptical of its chances for success in a market where
consumer demand has yet to solidify for either HD DVD or Blu-ray
products.

"The market potential for the product is not very large," said Wolfgang
Schlichting, an analyst with market researcher IDC. "The verdict is
still out - both formats still have the chance of becoming dominant, and
companies need to focus on products that are price-driven and sell
today."

A key barrier, Schlichting said, is that any product with the
dual-format feature will likely be very expensive.

Electronics companies would have to pay additional royalty costs to
incorporate both formats. Also, unless production levels grow
significantly to lower costs, makers would be hard-pressed to reduce
retail prices enough to attract more customers, Schlichting said.

For now, Toshiba and Sony's race to bring competing hardware to the
market is set to continue.

Toshiba said Thursday it would postpone the sale of the world's first HD
DVD recorder, the RD-A1, by about two weeks to July 27 from July 14 due
to a production delay.

Because of problems in procuring some parts for the recorder, Toshiba
will not have enough units ready for a nationwide release until the
later date, according to company spokesman Keisuke Omori.

The machine combines an HD DVD burner with a 1-terabyte hard disk and
can record and store up to 130 hours of high-definition broadcasts. HD
DVD players are already available, but the RD-A1 will be the first model
that can record disks.

Sony has also been selling Blu-ray recorders in Japan since 2003, but
prices have been high and uptake low.

The new Toshiba recorder carries a suggested price tag of $3,470. The
electronics maker hopes to sell 10,000 recorders by the end of 2006,
according to Omori.

Toshiba launched HD DVD players in Japan in March, and in the United
States in April. Sony plans to begin selling personal computers equipped
with Blu-ray drives later this month.



Associated Press Technology Writer May Wong contributed to this report
from San Jose, Calif.




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