When it comes to video format wars, traditionally there has been a winner and a loser. But, if a new report issued by UK-based analyst firm Screen Digest is to be believed, the conflict raging between Toshiba's HD-DVD and Sony's Blu-ray high-definition video players may end in a stalemate.

　　Despite Blu-ray players currently outselling HD-DVD devices at a rate of two-to-one, Screen Digest's research indicates that film studios are already missing out on a massive chunk of change by going format-exclusive. According to the report, Hollywood studios supporting a single format are potentially missing out on $280 million in revenue for 2008. "Blu-ray-exclusive studios Sony, Fox and Disney could miss out on $175m in consumer spending by not publishing their films on HD-DVD, although Blu-ray's stronger sales mean that HD-DVD-only supporters are at risk of making the largest individual losses."

　　From these numbers, Screen Digest concludes that many format-exclusive studios will rethink their strategies in 2008. Rather than viewing Paramount's recent HD-DVD alignment as an obvious discrepancy in its projection, Screen Digest thinks the move will have the opposite effect on other studios. "The decision has effectively secured HD-DVD's immediate future, and cleared the way for the other studios that currently support one platform only to move to an agnostic position without being the studio solely responsible for prolonging a format war, or for killing off one of the formats."

　　In their reassessment, Screen Digest believes studios will prioritize lost sales over fueling the platform war. "Once it becomes clear that both formats are gaining customer acceptance, studios that have chosen to support one format over the other will realize that they are missing out on potential sales and will have to decide how long they can afford to place principle over profit. We believe that eventually most will decide to offer their titles on both HD-DVD and BD in order to maximise their returns," the report says.

　　Screen Digest also notes that their findings hinge upon the outcome of this holiday season. Specifically, the outcome they project will only come to pass as long as consumers choose to purchase hardware. In this sense, Blu-ray is currently enjoying a significant advantage over the HD-DVD player due to the PlayStation 3's installed base. However, Screen Digest's research indicates that PS3 owners buy far fewer Blu-ray movies than those who own stand-alone players, and the console is currently outselling other devices at a pace of six to one.