Sony Next Gen DVD Recorder Coming Dec.

The new Blu ray and HD DVD machines are expected to breathe new life into the slowing home video market, but the failure of the competing Toshiba and Sony led groups to agree on a unified format has paved the way for a costly battle reminiscent of the VHS Betamax war that caused widespread customer confusion.

While Blu ray has drawn more support among Hollywood and electronics firms, HD DVD has garnered allies among U.S. computer industry titans Microsoft Corp. and Intel Corp

Sony plans to launch PlayStation 3, which is equipped with a Blu ray player, in November in Japan and North America, holding high hopes that potentially explosive demand for PS3 will give the Blu ray camp a leg up over the competing format.

Sony sold almost a million units of PlayStation 2 in the first three days of its launch in Japan in 2000.

Microsoft, on the other hand, will launch an HD DVD player for its Xbox 360 game console on November 22 in Japan, stoking a format battle for next generation optical disc technology in the video game industry.

The benchmark Nikkei average edged down 0.08 percent.

(Additional reporting by Sachi Izumi)