Blu-ray, the Sony-backed storage medium for the upcoming PS3, was dealt a big blow as Toshiba today announced that four major Hollywood studios—Paramount Pictures, Universal Studios, Warner Bros. and New Line Cinema—plan to support the new HD-DVD format.

"We believe that HD DVD has clear advantages in cost of manufacturing and ease of replication, offering consumers the highest quality viewing experience at the most affordable price," said Thomas Lesinski, president, Paramount Pictures, Worldwide Home Entertainment.

Toshiba plans to start selling HD-DVD products by the end of 2005.

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