TOKYO, Feb 19, 2008 (AFP) - Japanese high-tech giant Toshiba on Tuesday announced its withdrawal from the high-definition DVD business, conceding defeat in a long-running format war with rival Sony.

Toshiba Corp. said that it aimed to end sales of its HD DVD machines by the end of March, clearing the way for the Blu-ray format developed by Sony Corp. and its partners to become the industry standard.

'We carefully assessed the long-term impact of continuing the so-called 'next-generation format war' and concluded that a swift decision will best help the market develop,' said Toshiba chief executive Atsutoshi Nishida.

In a replay of the VHS-Betamax video cassette format war in the late 1970s, Japanese high-tech giants had been battling to set the industry standard in next-generation DVDs with two rival formats that are incompatible.

But Toshiba and its HD DVD partners suffered a series of heavy setbacks, with Hollywood titan Warner Brothers and US retail giant Wal-Mart both throwing their weight behind Blu-ray.