Consumers can take heart that the two principal players in the next generation DVD standards war are now talking about developing a common standard.

If Sony and Toshiba can reach an agreement over the best way forward it would end a fierce three-year battle as well as the confusion for consumers as to which type of DVD player to buy in future. It would also bring down the cost to consumers.

Echoing the famous VHS and Betamax videotape format, the two electronic giants have been developing their own technology for DVD players.

At the core of both formats are blue lasers used by both the Blu ray and HD DVD technologies. These have a shorter wavelength than the red lasers used in current DVD equipment, and allow discs to store the higher definition data needed for high-definition movies and televisions.

Sony's Blu-ray technology, backed by manufacturers such as Dell and Samsung uses discs where data is put on the surface of a substrate and covered by thin protective layers. Its supporters say it is superior to HD DVD because it offers up to 50 Gb capacity compared to HD DVD's maximum of 30 Gb.

Toshiba's HD DVD technology, backed by the likes of NEC and Sanyo uses discs where the data is sandwiched between two substrates. Because they have virtually the same structure as current discs, it has been popular for manufacturers as they won't have to change manufacturing processes radically thus keeping costs down.

Sony has proposed using Blu-ray's disc structure and HD DVD software technology as the basis for a new format. Toshiba has suggested using the HD DVD disc structure and employing Sony's multi-layer data-recording technology, according to a Japanese newspaper.

How successful talks will be is unclear but if agreement is reached it is likely to be soon as the first new generation DVD players are set to hit the market in Europe later this year.