When I decided to buy my first DVD player the movie I wanted to buy the device with was The Matrix. This movie was so visually stunning I wanted to watch it at it's best picture quality. That was when DVDs were just starting to be come affordable. Now we are entering a new generation of DVD players and it's VHS vs Betamax all over again. You have Sony pushing BluRay as their high definition DVD format and Toshiba pushing HD-DVD as their high definition format of choice. The majority of movie studios are supporting both formats and as much as the BluRay camp likes to tout they have sold more movies on their format, HD-DVD has sold more dedicated players and has only sold a few thousand less movies.

A large rumor has been leaked that very well could decide the market winner. Walmart has made a deal to buy 2 million high def movie players and they will selling for around $199 and be in stores in time for the holiday shopping season. With the largest retailer in the US making a move like this it seems that they are declaring the winner before the market can choose one. It seems that Walmart has chosen to crown HD-DVD as it's choice for high definition video player. This move is interesting since it would seem that BluRay has the momentum in this format war. BluRay has good support from the studios and is built into the PS3. Why would Walmart make such a move?

The answer to that question is multifaceted with one big factor: cost. The BluRay player used special disk that cost more to manufacture and requires changes to the current DVD stamping process. The HD-DVD movies can be built on existing production lines saving on manufacturing costs. Another factor that has to be considered is the failure of the PS3. Sony used the PS2 to help support the adoption of DVD players. This time around the PS3 is not selling anywhere near as many units and will most likely not see a jump in sales unit the price drops some time next year. Now the third reason Walmart has adopted HD-DVD could be the fact that the Matrix Trilogy is only coming to HD-DVD. Pre-orders for the Matrix Trilogy and Planet Earth will propel HD-DVD past BluRay in movie sales and should increase the adoption of HD-DVD. If a retailer like Walmart starts selling cheap HD-DVD players and subsidies the sale of HD-DVD movies this could be the end of BluRay. This would also be the third time (Betamax, UMD, BluRay) Sony has tried to promote a new video format and failed.

Update: I just purchased Planet Earth and the Matrix Trilogy for HD-DVD decided to see what was in Amazon's Top Sellers DVD list.  Planet Earth is at the top of the list in DVD, 5th on the list in HD-DVD and 8th on the list in BluRay.