Toshiba Corp., a giant Japan-based electronics conglomerate, may drop manufacturing of both DVD and own-developed HD DVD video players, sources have noted recently. It is unclear whether the nuclear reactor industry-powered company wants to quit the consumer electronics industry video totally or just wants to cease any CE manufacturing.

According to one of Japanese web-sites, Toshiba was going to cease manufacturing of certain digital video players in Japan due to an unknown reason. According to a video presumably taped from Japan-based channel NHK, Toshiba may plan to quit cease manufacturing and developing of its own-developed HD DVD format players, something, which may destroy HD DVD completely.

Toshiba Corp. said Monday no decision has been made but acknowledged it had started a review of its HD DVD strategy, Associated Press reported.

“The media [has] reported that Toshiba will discontinue its HD DVD business. Toshiba has not made any announcement concerning this. Although Toshiba is currently assessing its business strategies, no decision has been made at this moment,” an official statement by Toshiba reads, reports High-Def Digest web-site.

Blu-ray and HD DVD formats compete for replacing the DVD standard. HD DVD discs can store up to 15GB on a single layer and up to 30GB on two layers. Its competitor, Blu-ray, can store up to 25GB per single layer and up to 50GB on two layers, but Blu-ray discs are more expensive to produce. Traditional single-layer DVDs allow consumers to watch movies in 720x480 (NTSC) or 720x576 (PAL) resolution with Dolby Digital audio. The blue-laser discs will provide consumers 1920x1080 resolution as well as advanced DTS or Dolby Digital audio along with some additional interactive features.

The HD DVD is pushed aggressively by Toshiba, NEC, Intel and Microsoft, as well as being standardized at the DVD Forum, which represents over 230 consumer electronics, information technology, and content companies worldwide. Blu-ray is backed by Sony, Panasonic and Philips, which are among the world’s largest makers of electronics. Among Hollywood studios HD DVD is supported by Paramount Pictures and Universal Pictures, whereas New Line Cinema, Sony Pictures, Walt Disney, Warner Bros. and Twentieth Century Fox endorse Blu-ray.