"We may actually have a situation where merchandise from both sides is put on store shelves. But the market would not allow that situation to last very long," said Tadashi Okamura.
The head of Sony's gaming division agreed, but said the only hope for an agreement is if the two parties can agree to use Blu-ray's physical characteristics, as Sony is committed to incorporating the technology into its PlayStation gaming system.
The next generation of DVD will use a blue laser technology that permits much higher storage capacities. This will facilitate high-definition video and many other enhancements. The problem is that there are two main competing formats, Blu-Ray from Sony and HD DVD from Toshiba, with the consumer caught in the middle.