NEC Chip to Bridge Next-Gen DVD Divide?

NEC Electronics said it has devised a chip set that will recognize both Blu-ray and HD DVD discs in the same player. While a chip that is compatible with both incompatible DVD standards could realize a cost-savings in manufacturing such devices and at least temporarily bridge the gap now confronting consumers, the chip alone is not enough to pull off the dual player scheme.

Another component still vital to the dual approach, according to Reuters, is optical pickup technology that reads and plays back both formats. Any such dual disc players are also expected to be relatively expensive to build and sell, as well, because of the high costs of the components, at least for awhile. While price points likely would begin to decrease in 2007 and beyond, new players made with redundant components will add to manufacturing costs.

Royalties must also be factored in (or, in this case, dual royalties). NEC said it plans to start shipping up to 300,000 monthly of the new chips by April 2007.