The folks over at Entertainment Merchants Association wrote to let us know that the $18 billion for "game sales" includes software, hardware and even accessories. While the DVD sales include, you got it, only the DVDs. The actual apples-to-apples comparison has DVD sales at $16 billion and video game sales clocking in at a meekly $8.64 billion. Even if you add that $503 million in sales the industry is no where near toppling DVD sales from its mighty high roost.

One day video games will be bigger business than music and hollywood, mark my words, but that day hasn't come yet.

While it is unfortunate that HD DVD was discontinued, there is still enjoyment to be had from your Xbox 360 HD DVD Player. You can take this as an opportunity to build out your movie collection! There are around 500 HD DVD movies to choose from and many at great deals, so there is a fair amount of content for HD DVD on the market. It also is a terrific DVD player and it allows you to have game discs and movie discs, whether HD DVD or DVD, within the console at one time. The HD DVD player also adds two additional USB ports to your console.

But if we're reading the fine print correctly, there are two super cool things about this deal. First, you don't need to give up your HD DVD player. It's simply free money. Second, there is no start date to this offer, so if you bought an HD DVD player from them when the technology hit the market, you should still be eligible for the rebate.

Here's the full offer from an Amazon email.

Dear Amazon.com Customer,

As someone who purchased an HD DVD player from us before February 23, 2008,* you might like to hear about a special offer available from Amazon.com.

New technologies don't always work out as planned. We at Amazon.com value our customer relationships more than anything and would like to support customers who purchased these players by offering a credit good for $50 off any products sold by Amazon.com.** Just use promotional code PROMO CODE HERE when checking out. The code is valid through April 9, 2009, so you have plenty of time to use your credit. Purchases from third-party merchants on our site are not eligible.

In addition, we'd like to share some of our top offers on Blu-ray discs, HDTVs and other high-def technology and remind you that the Amazon.com Marketplace is available to sell items you might not want anymore as you upgrade to new ones. Also be sure to check out our monthly Amazon.com Early Adopters Delivers email to find out about the latest technology.

* On February 23, 2008, the last manufacturer of HD DVD players announced it was ceasing production of those players.

** Offer cannot be used to pay for special-order titles, e-books or downloadable e-content, wireless service plans, gift certificates, gift-wrap, taxes, or shipping and handling charges. $50.00 promotional credit is per HD DVD player purchased prior to February 23, 2008—up to 10 units for a maximum credit of $500.00.

Amazon Handing Out $50 to HD DVD Victims [Gizmodo]

What's new? Compatibility improvements with certain titles and additional support for network features, according to the source, but we're hearing rumblings that it will soon weigh down your papers with much higher clarity. Yes, it is awesome!

HD DVD Update [Xbox Lives Major Nelson]

The horse that we're fundamentally backing is the one that says the future of entertainment content is online digital distribution. I would argue that we backed the right horse... If we're sitting here in 12 or 18 months time, we'll be saying 'why were people even thinking about a disc format when it's really about digital distribution?' Our strategy's been developed for the last six or seven years, and ever since we launched the platform it [online content] has been our big, big, big bet.

In The Name of the King: A Dungeon Siege Tale (R1) in April [DVD Times]

"We are really excited to be working with Film Roman to create an animated feature that will tell the portion of the Dead Space saga between the comic and game," said Glen Schofield, Executive Producer for Dead Space. "With the video game, comic book and now animated movie, Dead Space has become a true multimedia brand.

EA and Starz Media Join to Produce Animated Dead Space Movie

Feature Based on Highly Anticipated Video Game Is First Project Between Starz Media and Electronic Arts

BURBANK, Calif. & REDWOOD CITY, Calif.—(BUSINESS WIRE)—Electronic Arts Inc. (NASDAQ:ERTS) and Starz Media announced today the development of an animated movie prequel to the highly anticipated sci-fi survival horror game Dead Space™. The companies also have animation projects in development for two other EA franchises. The relationship kicks off with this Dead Space prelude that will deliver new details on the horrifying tale the game will unleash this Halloween.

The script for the Dead Space animated feature picks up the plot where the original comic book series ends and leads up to the beginning of the Dead Space game. The story focuses on the events aboard a futuristic mining spaceship, the USG Ishimura, after it pulls a mysterious artifact from a remote dig site. The artifact triggers the sudden invasion of a long-dormant alien presence, and the Ishimura's crewmembers find themselves locked in a frantic struggle to survive. The animated feature is slated to premiere at the same time as the game is launched.

This project signals both companies' belief that mass-appeal games provide opportunities for new and exciting programming in a variety of different media. This announcement comes at a time when the video game industry is valued at more than $30 billion worldwide for packaged goods, wireless and online games in calendar year 2007 and game-inspired entertainment is pervasive in movie theaters, on TV and across online media.

Starz Media is currently in discussions with broadcasters worldwide that have already expressed interest in airing Dead Space, which is scheduled to be released via broadcast TV and then on DVD. The company will launch international sales of the animated feature at the upcoming MIP-TV market in Cannes, France. Starz Media will also market the movie through its home entertainment company Anchor Bay Entertainment, as well as via online and wireless distributors.

The deal with Starz Media and its animation unit Film Roman reflects EA's growing commitment to developing filmed entertainment projects based on the company's games. For Film Roman, the venerable animation company behind "The Simpsons," "King of the Hill" and the pre-school hit "Wow! Wow! Wubbzy!," the booming video game business is fertile territory for developing new hit movies and series.

"Due to the richness and complexity of stories that have evolved for video games, they have become a type of entertainment that can span generations and provide fantastic inspiration for other forms of media; especially in the realm of animated features," Film Roman President and COO Scott Greenberg said. "We're particularly thrilled to be starting off with Dead Space."

"We are really excited to be working with Film Roman to create an animated feature that will tell the portion of the Dead Space saga between the comic and game," said Glen Schofield, Executive Producer for Dead Space. "With the video game, comic book and now animated movie, Dead Space has become a true multimedia brand. Each of these elements delivers the story to new audiences and tells it from different aspects and perspectives."

Film Roman is producing "Dead Space" in alliance with Digital Tetra Inc., in Korea. The Gotham Group of Los Angeles, a leading animation representation company, helped put the production arrangement together.

Under development at EA Redwood Shores, Dead Space is not yet rated by PEGI or ESRB. For more information about the game, go to the website at www.deadspacegame.com.

Those stuck with HD-DVD players getting gift cards {CNN.com - Thanks, Robert]

It may not have had the best response from critics, but the masses and Roger Ebert seemed to like it. And he knows what's what. Any huge Hitman fans picking this one up?

Given that the Xbox 360's HD DVD player should be applicable and that one Giz reader used the deal to acquire a new PS3, there are some interesting possibilities for those looking to ditch brand loyalty in the interest of new media standards. Given that this is a completely unadvertised promotion, expect to haggle in some locations. And Circuit City, consider yourself officially on our cool list for the remainder of the day. You're penciled in under "Burt Reynolds."

Circuit City's HD DVD for Blu-Ray Trade-In Confirmed By Sources, Readers [Gizmodo]

Now, because timing is everything, Microsoft has released their emulator to the public free of charge (go forth and do with it what you will). Developers who already paid for the program will be refunded.

Xbox 360 HD DVD Emulator - Now Free [A Dullard's Guide via Gameguru]

I'll start with the admission that I am one of the early a-duh-pters that has the HD DVD add-on for the XBOX 360. That doesn't make me a MS fanboi, I would instead describe myself as an evil-company-hateboi. And if you want proof that I'm not in MS' camp just talk to me someday about Vista and its wonderful support of earlier versions of Office.

There are several reasons that the death of HD DVD sticks in my craw.

1) HD DVD was far more consumer-friendly.

* It's region-free. The spec does not have Region coding, allowing for my purchase of titles from anywhere in the world. I could watch German scheisse videos featuring Cartman's mom to my heart's content.

* It's easily upgradeable. An ethernet port is mandatory in the HD DVD spec. The majority of stand alone Blu-ray players don't have ethernet which not only limits interactive features but more importantly complicates upgrade issues. Something the early adopters will be realizing once Profile 2.0 (BD-Live) is widely released.

* AACS (onerous copy protection) is optional in HD DVD but required in Blu-ray. This should come as no surprise to anybody familiar with Sony and their bootkit rootkit bonanza rewards.

Although none of these features may matter to you, the underlying principle of being consumer-friendly should. Sony simply doesn't get it and frankly I feel that they don't care.

2) Who the hell decided "one format to rule them all?"

Yeah. I actually have heard of Betamax but I've also heard of Macintosh, Firefox and Linux. Simply put - choice is good for consumers. I recognize that there are additional costs to the studios in authoring more than one format but in the scheme of things this is a negligible cost.

The excuse that consumers wouldn't get off of the fence until the "format war" was over is a self-fulfilling prophecy. I can guaran-damn-tee you that the fence is where I'll stay firmly entrenched next time around.

3) My last beef is far less tangible but still valid to me and that is this bully-ish concept of Sony declaring that if we didn't like their rules then they were going to take their ball (read: movie studio) and go home.

I recognize that I'm painting Sony with a very broad brush (as I type this on my snazzy Sony VAIO laptop sitting in front of my gorgeous Sony XBR2-60" TV) and that's not my intent. But faulting "Sony" is less cumbersome an attribution than to the conference room full of pointy-headed-asshats who were behind this consumer unfriendly move.

So while my 360 will rely heavily on downloaded movies and videos from XBL the HD DVD will still live on in my house in the 40-ish movies that I currently have and the (hopefully) $10 movies to come in the following months.

HD DVD, I hardly knew ya.

Microsoft Drops HD DVD for Xbox 360 [AHN]

The full statement from Microsoft is just after this, full of digital distribution good wishes and stiff upper lips. Rest in peace, Xbox 360 HD-DVD player.

As a result of recent decisions made by Toshiba, Hollywood studios, and retailers, Microsoft plans to withdraw from HD DVD. Xbox will no longer manufacture new HD DVD players for the Xbox 360, but we will continue to provide standard product and warranty support for all Xbox 360 HD DVD Players in the market. As we stated earlier, we do not believe this decision will have any material impact on the Xbox 360 platform or our position in the marketplace. HD DVD is one of the several ways we offer a high definition experience to consumers and we will continue to give consumers the choice to enjoy digital distribution of high definition movies and TV shows directly to their living room, along with playback of the DVD movies they already own.

Ways to Extend Xbox 360 HD DVD Player's Life [TeamXbox via Hatimaki]

It's something we will examine from now, and there's nothing to announce at the moment.

Toshiba will begin to reduce shipments of HD DVD players and recorders to retail channels, aiming for cessation of these businesses by the end of March 2008. Toshiba also plans to end volume production of HD DVD disk drives for such applications as PCs and games in the same timeframe, yet will continue to make efforts to meet customer requirements. The company will continue to assess the position of notebook PCs with integrated HD DVD drives within the overall PC business relative to future market demand.

This decision will not impact on Toshiba's commitment to standard DVD, and the company will continue to market conventional DVD players and recorders. Toshiba intends to continue to contribute to the development of the DVD industry, as a member of the DVD Forum, an international organization with some 200 member companies, committed to the discussion and defining of optimum optical disc formats for the consumer and the related industries.

Toshiba Announces Discontinuation of HD DVD Businesses

19 February, 2008

Company Remains Focused on Championing Consumer Access to High Definition Content

TOKYO—Toshiba Corporation today announced that it has undertaken a thorough review of its overall strategy for HD DVD and has decided it will no longer develop, manufacture and market HD DVD players and recorders. This decision has been made following recent major changes in the market. Toshiba will continue, however, to provide full product support and after-sales service for all owners of Toshiba HD DVD products.

HD DVD was developed to offer consumers access at an affordable price to high-quality, high definition content and prepare them for the digital convergence of tomorrow where the fusion of consumer electronics and IT will continue to progress.

"We carefully assessed the long-term impact of continuing the so-called 'next-generation format war' and concluded that a swift decision will best help the market develop," said Atsutoshi Nishida, President and CEO of Toshiba Corporation. "While we are disappointed for the company and more importantly, for the consumer, the real mass market opportunity for high definition content remains untapped and Toshiba is both able and determined to use our talent, technology and intellectual property to make digital convergence a reality."

Toshiba will continue to lead innovation, in a wide range of technologies that will drive mass market access to high definition content. These include high capacity NAND flash memory, small form factor hard disk drives, next generation CPUs, visual processing, and wireless and encryption technologies. The company expects to make forthcoming announcements around strategic progress in these convergence technologies.

Toshiba will begin to reduce shipments of HD DVD players and recorders to retail channels, aiming for cessation of these businesses by the end of March 2008. Toshiba also plans to end volume production of HD DVD disk drives for such applications as PCs and games in the same timeframe, yet will continue to make efforts to meet customer requirements. The company will continue to assess the position of notebook PCs with integrated HD DVD drives within the overall PC business relative to future market demand.

This decision will not impact on Toshiba's commitment to standard DVD, and the company will continue to market conventional DVD players and recorders. Toshiba intends to continue to contribute to the development of the DVD industry, as a member of the DVD Forum, an international organization with some 200 member companies, committed to the discussion and defining of optimum optical disc formats for the consumer and the related industries.

Toshiba also intends to maintain collaborative relations with the companies who joined with Toshiba in working to build up the HD DVD market, including Universal Studios, Paramount Pictures, and DreamWorks Animation and major Japanese and European content providers on the entertainment side, as well as leaders in the IT industry, including Microsoft, Intel, and HP. Toshiba will study possible collaboration with these companies for future business opportunities, utilizing the many assets generated through the development of HD DVD.

"We do not believe the recent reports about HD DVD will have any material impact on the Xbox 360 platform or our position in the marketplace. As we've long stated, we believe it is games that sell consoles and Xbox 360 continues to have the largest next-gen games library with the most exclusives and best selling games in the industry. We will wait until we hear from Toshiba before announcing any specific plans around the Xbox 360 HD DVD player. HD DVD is one of the several ways we offer a high definition experience to consumers and we will continue to give consumers the choice to enjoy digital distribution of high definition movies and TV shows directly to their living room along with playback of the DVD movies they already own."

The company said it will continue to sell HD-DVD products for a while but will stop further development of HD DVD. Meanwhile, it said its DVD factories in Aomori Prefecture, northern Japan, would be closed.

Market observers said that Toshiba could suffer a loss of hundreds of millions of US dollars.

Ouch, if it's true.

Toshiba plans to withdraw from HD-DVD production [NHK] and Toshiba to give up on HD DVD, end format war [Reuters]

"We've listened to our customers, who are showing a clear preference toward Blu-ray products and movies with their purchases."

Wal-Mart will continue to sell HD-DVD products in the coming months, but expect to be Blu-ray exclusive soon with a heavy shift happening in the next thirty days. Add to that this week's announcement of Netflix's Blu-ray exclusivity and you've got what looks like an end in sight to the format wars.

Wal-Mart on Blu-ray bandwagon [CNN Money]

We can't wait until we stop having to pretend to care about the format war, but anticipate the thousands of submissions featuring Xbox 360 HD-DVD add-ons repurposed for homemade Gundam suits and whatnot. Someone's probably in the process of gutting an NES and stuffing it in the thing right now.

Netflix, Citing a Clear Signal From the Industry, Will Carry High-Def DVDs Only in Blu-ray Format [Netflix - thanks, everyone!]

Xbox 360 HD DVD Player price drop (now US $129.99) [Xbox Live's Major Nelson - Thanks Scott!]

"The main reason is the success of Sony's PlayStation 3 machine. Because it plays Blu-ray discs, there are over three quarters of a million homes in the UK that can view the new high definition format."

Woolworths backs Blu-Ray format over HD DVD [RetailBulletin via GamesIndustry]

Of the survey's respondents, all of which fall into 18-49 demographic that advertisers just adore, 27% say they are watching less network television, while only 12% of cable series viewers have been turned away by the lazy fare being served up on the airwaves these days. The DVD industry is seeing the biggest benefit from the strike, as 43% of Americans turn to DVD movies for comfort and another 23% prefer to curl up with a TV box set of shows gone by. Another 26%, however, have discovered they suddenly have more free time to fire up their consoles or computers and get their game on.

"The strike makes scripted programming more valuable than ever," Interpret CEO Michael Dowling said. "As top shows disappear from primetime, viewers may go back and view critically lauded TV series they missed the first time around, play more video games or watch more movies on DVD."

The only thing that worries me here is that video game writers are slowly being allowed into the Writer's Guild of America as part of their new media push, which could mean that in the future such strikes could affect the game industry as well. Where then would the game companies turn for witty, borderline attractive writers with a background steeped in video game culture and history? Oh, and tall. They'd have be very tall. *finger-phones to the ear while mouthing "call me"* We'll just have to hope that never comes to pass.
Survey: DVD, games not striking out [The Hollywood Reporter]

You may be enticed into picking up an HD DVD player (like that Xbox 360 peripheral), especially since we're sure to see loads of deals cropping up in the next few months. But if the pulse of the press is right, which I guarantee it is, HD DVD has been diagnosed with an incurable disease begging for medicine you shouldn't subsidize. Save your money; avoid the heartbreak. Don't fall for the last push of a dead platform. HD DVD is officially a "no buy." As for Blu-ray, the PS3 is still the best deal on the market.

Though HD-DVD backers may still limp along in their support or fanboyism of a movie format, this "war" couldn't look any more like one camp has won at this point. It's all over but the crying, blanket clutching and Michael Bay gloating, it seems.

Blu-ray could win high-def battle [Variety]

Hit the jump for the four step procedure:

1. With AnyDVD HD, rip a EVO file of the HD DVD Transformers
2. Using EVOdemux and rebuild, the necessary image and voice are selected
3. Convert EVO file into BDMV form with TSremux.
4. Burn onto BD-RE with Ulead Burn.Now

Once again, we haven't tried this, so we're not sure if it works or not (or even if these directions are correct). This fella was apparently able to get it on Blu-ray — though, he wasn't able to get subtitles transferred over. Let us know if you are able to do this successfully.
Transformers on Blu-ray PS3 [Pocket News via Hobby Blog]

Yesterday when Reuters reported that Microsoft will consider going to Blu-Ray if consumers demand it some people sort of freaked. Among the list? Microsoft. Today the company reached out to us to "clarify" a story they say was missing some much needed context.

There was a critical element of our comments missing from the story — Microsoft currently has no plans at this time to consider Blu-ray as an option. We continue to believe that HD DVD is the best optical solution for consumers, since it's the only format today that delivers quality experiences at affordable prices.

When I pressed the spokesperson for a little more details about how the story was contextually incorrect, they cut to the chase:

While the article states that Microsoft might possibly look into Blu-ray, we just want to emphasize that there are no current plans to consider Blu-ray as an option. Microsoft continues to be dedicated to the HD DVD format and we don't want the Reuters article to mislead or suggest otherwise.

So HD-DVD has at least one stalwart supporter in their corner still.

Microsoft Will Consider Going Blu-Ray if Consumers Demand [Kotaku]