An industry source revealed that Sony and Toshiba are currently in talks with each other to discuss their respected formats, HD DVD and Blu-Ray. HD DVD and Blu-Ray are next generation of high-definition storage media that is expected to hit retail shelves in late 2005 (HD DVD) and early 2006 (Blu-Ray).

Since discussions between the two supporters are at an early stage, it is impossible to predict the outcome. The source said both companies will be successful commercially should they opt for a common DVD format. This common format could very well be a hybrid of HD DVD and Blu-Ray.

Not only will it benefit the companies, but it will also help deduct confusion from the market that already seems to have matured throughout the industry.

The source said media based on a single format might also be cheaper due to less competition between various formats.

HD DVD video players, along with nearly a dozen movies, are expected to enter the market in late 2005. Sony will bring Blu-Ray early next year with its next version of PlayStation gaming console that is also expected to playback movies on the Blu-Ray standard.

Although neither Sony nor Toshiba confirmed the reports, both said they are open to discussions with each other to try to condense the possible confusion factor.