Jan. 7 (Bloomberg) -- Toshiba Corp. shares fell to a nine- month low after Time Warner Inc., the world's largest publisher of DVD titles, abandoned the Japanese company's HD DVD format to adopt Sony Corp.'s Blu-ray technology.
Time Warner's decision may tip the balance in Sony's favor in the home theater industry's biggest format war since VHS beat Betamax two decades ago. Warner Bros. Entertainment, which had been releasing movies based on both technologies, said on Jan. 4 it will drop Toshiba's standard at the end of May.
``It's a game-changing event, game over for HD DVD,'' Macquarie Securities Ltd. analyst David Gibson said in an e-mail today. ``Other studios will follow'' industry leader Warner, which distributes more than 300 million DVDs a year, Gibson said.
Toshiba, HD DVD's leading promoter, declined 2.3 percent to 783 yen, its lowest since March 28, at the close on the Tokyo Stock Exchange. Tokyo-based Sony, the world's second-largest consumer electronics maker, climbed 0.7 percent. The Nikkei 225 Stock Average fell 1.2 percent.