Consumer electronics giants Sony and Toshiba are reportedly discussing a unified standard for next-generation DVDs.
According to reports in Japan, the two groups are in talks aimed at breaking the competitive stand-off between the camps' rival technologies.
The Nihon Keizai business daily said a way forward between Sony's Blu-ray technology and Toshiba's HD DVD optical discs could come as early as this month.
A Toshiba spokeswoman told Reuters: "Toshiba believes a single format will benefit consumers. We are in talks (with the rival camp and related parties) and we will continue engaging in the talks."
An agreement on a single standard for next generation DVDs would have a big impact on hundreds of content production and consumer technology companies around the world.
Sony's Blu-ray technology is backed by Philips, Dell, Samsung and Matsushita. In December, Disney announced it was opting for Sony's Blu-ray format for several future releases.
The move was seen as the beginning of a possible format war, since four other Hollywood studios had given their backing to the rival HD-DVD standard supported by Toshiba.
Disney said its agreement with Blu-Ray was non-exclusive, leaving the option open for Disney to switch teams later.
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