Although format wars in the past have been costly for all involved, Toshiba thought that it could take on the might of Sony -- originator of the CD along with Royal Dutch Phillips -- but they had underestimated the power of Sony's gaming division.

By installing Blu Ray into the third version of Sony's Playstation console, Sony has already bought themselves a tremendous advantage over Toshiba.

But it was last month's decision by Warner Brothers to drop HD DVD in favour of Blu Ray that signed the death warrant for the nascent format.

"That had tremendous impact," said Atsutoshi Nishida, president of Toshiba.

"If we had continued, that would have created problems for consumers, and we simply had no chance to win."

In some parts of Toshiba's global empire, senior executives are manfully spinning the defeat into a victory of sorts.

"The projected lifespan of HD DVD has shortened significantly due to the acceleration of digital content distribution via the internet," said Mark Whittard, general manager of Toshiba Australia.

"We believe that technology developments will leapfrog high definition, whether it be HD DVD or Blu Ray discs."

Sony refuted Mr Whittard's argument in no uncertain terms.

"I think if he'd seen the digital download numbers he wouldn't say that," said Michele Garra, managing director of Sony Pictures Home Entertainment.

"The perception versus the reality is that it's happening a lot more slowly then anyone figured."

"It may still be eight to 10 years away -- at the earliest five if we're wrong."

Consumers with a collection of HD DVD discs may now be feeling disappointed, but Korean manufacturer LG have offered them some comfort.

The company have pledged to retain support for HD DVD for now.

"LG believes that at this present moment in time, it is necessary to provide a player which supports both formats and therefore create simplicity and convenience for the existing HD DVD consumer," read a statement from the manufacturer.