Toshiba president Tadashi Okamura predicts that producers of the next generation of optical discs will eventually use one format because the market will not allow two formats to co-exist.

He does expects that products based on the two competing standards – HD-DVD and Blu-Ray – will be around for some time, however.

He said: "We may actually have a situation where merchandise from both sides is put on store shelves. But the market would not allow that situation to last very long," reports Reuters.

Sony's Ken Kutaragi also suggested that there is still a window of opportunity for a unified format. "The only hope is if we can reach an agreement in a week or two on a new format that is not that different from Blu-ray physically," Kutaragi said.

Playstation developer Ken Kutaragi was recently kicked off the company board when Howard Stringer was made CEO.

Toshiba plans to launch HD DVD-based players by the end of 2005, and Sony plans to put a Blu-ray disc drive in its new PlayStation game console next year, writes Reuters.