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The biggest technology "boxing match" since Betamax vs VHS is getting under way - but both contestants are in the blue corner.

Blu-Ray and HD-DVD are the two biggest formats in the next generation of optical discs and players (think better quality, bigger capacity DVDs and players). They both use a blue laser, which lets them read more data than the red one used today.

Either format will let you watch DVDs on high definition (HD) TV sets, which provide clearer, more vivid and impressive images and audio.

Blu-Ray and HD-DVD are battling it out to become the format to plump for before people start buying in droves.

HD-DVD is the official successor to DVD, which could mean consumers will trust it more - discs are quicker and cheaper to manufacture for HD-DVD, and unlike Blu-Ray, are all backwardly compatible with current CDs and DVDs (although most Blu-Ray players will be backwardly compatible too).

But Blu-Ray discs hold up to 200 gigabytes against 90 for HD-DVDs - hugely important for the videogames industry.

Microsoft, Toshiba and Intel back HD-DVD, Blu-Ray has Sony and Philips - and most of the film and entertainment industries.

Sony is using Blu-Ray for games on its next-generation console, PlayStation 3 (PS3), which will also be able to play films etc on Blu-Ray discs.

When it's released in the next few months, the PS3 could be the Trojan horse that takes Blu-Ray to the masses before HD-DVD's sales begin to lift off.

Blu-Ray is technically better and has superior backing - but many will recall from the Betamax/VHS battle, the favourite doesn't always win.

One thing is certain, one of the contestants will get KO'd in the end.

My advice? Don't back your fighter too soon, or you could be left feeling blue.

Herb Kim is chief executive officer of Codeworks, the North-East's centre of excellence for digital technology.

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