Japanese media report that Sony and Toshiba's negotiation over next-generation DVD standards will be finished by the end of May.

This is bad news for Chinese disk player manufacturers who are seeking an independent EVD standard.

Once the two Japanese groups–Blue Ray Group represented by both Sony and Panasonic and the HD-DVD Group headed by Toshiba, NEC and Sanyo–enter into a strategic alliance, it will be much more difficult for Chinese manufacturers to expand in the international market.

So far, neither Sony nor Toshiba has given any details on the issue.


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