Key leaders met this week to tackle one of the most contentious CE issues of our times: Blu-ray vs HD-DVD. iSuppli weighs in on the face-off at the Consumer Electronics Show (CES). Despite Blu-ray claims of victory, the analysts caution that this issue is far from settled.

While CES didn’t come close to determining which format will win, the Blu-ray camp came out slightly ahead; on Monday, studio Warner Bros., which previously released content both in the Blu-ray and the HD-DVD formats, declared it would go Blu-ray-only in 2008.

Blu-ray champion Sony Corp. cheered, while the high-profile announcement dealt a blow to the HD-DVD camp.

The outcome?

“No side won this week -- but in reality, both camps lost,” said Krishna Chander, senior analyst, storage devices, for iSuppli. “Every day the Blu-ray and HD-DVD camps spend prosecuting this standards war represents a day lost in their race to remain relevant. Amid the rise of exciting new digital media offerings like YouTube, iTunes and On-Demand services, the window of lucrative opportunity is closing for both standards.”

What does this mean for consumers?

“Consumers likely will buy more Blu-ray players and more discs due to the availability of the Warner content,” Chander observed. “However, the company’s decision to go with Blu-ray hinged on short-term pricing declines for the Blu-ray players. While not commenting on the relative virtues of the standards, this analyst believes Warner’s cost-based decision doesn’t take into account two important factors: technical merits and long-term benefits for consumers.”

Blu-ray players recently have declined in pricing, but they remain more expensive than the HD-DVD alternatives. Beyond lower cost, the HD-DVD players also boast superior programmable features, enabled by Microsoft Corp.’s Hdi technology, proponents say.

With all the advantages, disadvantages, wins and losses for each technology, the jury is still out on which will prevail, according to iSuppli.

“With features and pricing still evolving quickly for both formats, consumers in 2008 must weigh the choices for themselves and make a decision. Otherwise, they can wait out the war for another year while enjoying HD movies on their cable and satellite providers’ On Demand services.”

As for iSuppli, they are not yet calling a winner in this battle.

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