According to a Japanese newspaper, Sony and Toshiba are close to finalizing a plan to develop a common standard for next-generation DVDs to resolve a three-year-long battle over formats that threatened the industry's growth. Formal announcement and details are due next week, May 16.

Reuters is reporting that Japan's Sony Corp. and Toshiba Corp. are in talks to develop a common standard for next-generation DVDs and end a fierce battle over formats that has been threatening to stifle the industry's growth. Sony and Toshiba, heading rival groups, have waged a three-year battle to have their new technology adopted by the industry and gain pole position in the multi-billion dollar markets for DVD players, PC drives and optical disks. Both parties are trying to avoid a repeat of the VHS vs. Betamax rivalry back in the 80's.