Sony and Toshiba announced Thursday that they were entering into negotiations to create one format for the next generation of DVD technology.

Sony has been promoting the Blu-Ray format of DVDs while Toshiba has developed the HD-DVD format. Both sides have been courting movie studios and electronics makers in an attempt to gain a larger share of the market for a product that has yet to be made widely available to consumers.

Experts say the situation closely resembles the battle between VHS and Beta formats when VCRs first became popular 25 years ago. Eventually, VHS won out with consumers although Beta actually had a higher quality picture.

Both formats have advantages. Blu-Ray has a much higher storage capacity than HD-DVD with 50 gigabytes as compared to 30 gigabytes. However, HD-DVD players may be compatible with present DVD technology and their product is less expansive to produce.

Both companies have denied published reports out of Japan that they were very close to agreeing on a single hybrid format that would utilize the best of both technologies.

Life would be easier for consumers if there is only one format and both companies have acknowledged that. Now, they simply have to find a way to make it happen before an all-out 'war' begins between the two formats.