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For the past month, maybe more, the local Wal-Marts have been undergoing a major shift.  Nearly everything but groceries have changed their location.  There are now more groceries, less pet supplies, and the electronics department has roughly doubled in size.  Apparently this shift is taking place across the country.  A post on Gizmodo today revealed a change in business at Wal-Mart when it comes to consumer electronics.  It seems they are cutting back on CDs and DVDs to focus on other products such as Blu-ray.

With CD sales down, digital downloads through the roof, and Blu-ray hoping to replace DVD, such a move was destined to happen at some point, I was just starting to wonder when.  With digital downloads exceeding many peoples expectations, it is a matter of time before the CD becomes just another dead physical format.  With stores such as Walmart, Circuit City, Best Buy and others still promoting the latest music in CD format, I had honestly started to wonder just when digital downloads would kill the CD.  I have known for some time that it was coming but haven’t seen any sites of a death anytime soon, until today.

With CD sales down 23% just this quarter for Walmart, it is no surprise that they have now started to take away floor space from the CD and even the DVD to give more room for video games, various consumer electronics such as the iPod and Zune as well as Blu-ray.  Such a move is a sign of the times and that death for the CD and DVD formats is nearing.  I expect to see other major retailers follow suit in the near future.  I will admit that with DVD sales still much higher than Blu-ray sales, I was kind of surprised to see this move at this time.  I have long believed that this is necessary for the mass adoption of Blu-ray.  When stores stop selling DVDs, people will start moving over to Blu-ray, just like they did for the transition from VHS to DVD.  Blu-ray certainly has other issues that it needs to conquer before it can truly take the place of DVD, but this is the first step in the right direction.

While I agree with Walmart in their move to replace CD floor space with portable media players, that isn’t really going to help them gain market share in the digital download space such much as it does iTunes and the Zune Marketplace.  If they expect to see real success from this, they need to bundle a deal from their new digital download store with the devices.  Walmart must give people an incentive to buy music from them before the customer becomes addicted to iTunes or other download service.  If they did this, they would see huge growth in their new MP3 store while slowing the growth of their competition.

This is a clear sign that these formats are soon going to go the way of the formats that came before them.  While the CD and DVD still have some life in them, if other stores follow suit and this falling sales trend continues, I can easily see the death of the CD within the next 2 years, and the death of the DVD within the next 5 (likely less).

Long live the extremely expensive Blu-ray!

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-Jeremy “pcnerd37″ Bray

The high-def movie war has dragged on for quite some time now as a stalemate until recently. With 6 of the 8 major movie studios backing Blu-ray and the others rumored to be jumping on the bandwagon, HD-DVD could die any day. While its almost certain HD-DVD will lose the war, it could still remain relevant in technology.

From the blogs I read and the people I talk to, most think that both Blu-ray and HD-DVD are useful primarily for movies and thats it. That is far from true. Much like DVD followed the CD has the primary way of transferring large amounts of data whether it be media files or software such as operating systems, office suites and more, HD-DVD or Blu-Ray will succeed the DVD. With HD-DVD about to lose the movie war, I feel it should pull out and focus on trying to become the successor of the DVD in the computer environment.

With HD-DVD being the cheaper of the two high density disks, it would be easier to take the spot from DVD. While HD-DVD may not have the capacity of Blu-ray, which is a big drawback, it could still fill the storage needs of the majority of people. With game developers and software developers pushing the dvd to its limit, HD-DVD would be a substantial storage increase allowing for more content for a small cost increase. It would give developers plenty of space to work with until the next generation of media becomes available.

Not only would such a move benefit companies, but it would also be a great consumer benefit as well. Even though external hard drives have become affordable for the masses, many still prefer to keep hard drive backups as well as media backups on disk. With a higher capacity disk, many will be able to decrease the size of their dvd and hard drive backup collections. One could reduce their home movie collection to a disk or two instead of many disks which take up valuable shelf space.

With Blu-ray about to win the high-def format war, to survive HD-DVD backers must pull out and focus on the computer market. Without a new strategy and market to target, the HD-DVD can live, but without a major change, it will become another dead format sooner rather than later.

-Jeremy “pcnerd37″ Bray