Think of it as "VHS versus Betamax: The Sequel." Three decades after consumer electronics companies started a format war by producing two types of videocassettes that were incompatible with one another, the industry is caught up in a new battle involving the next-generation of video players.

Both the new formats -- the HD DVD and the Blu-ray Disc -- offer high-definition video and upgraded audio. Each uses blue-laser technology that makes it possible to stuff more data onto their discs than the red lasers used in standard DVDs.

But HD DVD players don't play Blu-ray discs, and vice versa. The first HD DVD players hit the U.S. market in April, and the first Blu-ray players were shipped in June.

However, they haven't been a hot gift item this holiday season. Many people still are unaware of either format. The market is limited to consumers who have high-definition televisions, which are essential to displaying the improved visuals HD DVD and Blu-ray promise. The players are pricey, as you would expect with a new technology.

But having competing formats is the biggest deterrent to buyers, affecting even early adopters who are willing to pay premium prices for the next big thing, said iSuppli analyst Chris Crotty.

The industry's failure to agree on a single standard, as it did with standard DVDs, is "greedy and stupid," Crotty said.

The picture quality of the two formats, Crotty said, is indistinguishable. "There is absolutely no reason for this format war," he said.

In-Stat analyst Christopher Kissel projects that combined sales of HD-DVD and Blu-ray players this year will total 50,000 in North America. To put that in perspective, sales of standard DVD players and recorders is expected to reach 37.4 million units this year.

HD DVD and Blu-ray players also play standard DVDs. And when they do, the resulting picture is "near-HD" quality when they're connected to a high-definition TV, said Frank Roshinski, vice president of the Tweeter chain of electronics stores.

These next-generation video players are emerging as sales of movies on standard DVDs -- a crucial source of revenue for the Hollywood studios -- are flattening. Sales of DVD players, which have become a commodity now that low-end models sell for $30, also are declining. So Hollywood and the electronics industry are eager to see new technologies boost their sales -- and profits.

Stores wait it out

Some electronics stores aren't selling HD DVD and Blu-ray players yet. Garner TV & Appliance doesn't carry them because, given their current prices, the market is not big enough, said Justin Summers, a salesman in the electronics department.

Still, Summers sees the next-generation players as "the wave of the future."

Similarly, although you can rent HD DVDs and Blu-ray discs online from Netflix and Blockbuster, only about 250 of the more than 5,000 Blockbuster stores carry them .

In the Triangle, the Blockbuster on N.C. 54 in Durham has the discs, said spokesman Randy Hargrove.

Right now, many consumers who crave high-definition movies might be sitting on the sidelines because they don't want to buy into a format that, like Betamax, becomes an also-ran that will be yanked from the market.

"It is hurting sales of both of these players," Kissel said.

Another consideration is that movie choices are limited by the format you choose.

Although a few studios are producing discs for HD DVD and Blu-ray, others have chosen sides. Moreover, the formats are so new that, as of mid-December, each offered fewer than 150 movie titles.

Which will survive?

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