The estimated one million people in the world who had already bought HD-DVD machines either as a stand-alone or as an addition to their Xbox gaming console by promising the company would continue to provide product support.
Both HD-DVD and Blu ray formats provided crisp, high-definition pictures and sound and allowed for much greater storage of information on the discs. But the formats were incompatible with each other.
And neither format's discs would play on an older DVD player Analysts it said exit would be good for business. Goldman Sachs had earlier estimated that the move would improve.
It has been aggressively discounting its HD-DVD players to boost sales, which by some estimates lagged Blu-ray player sales by a margin of six to one.
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