March 10 -- Blu-ray Disc-supporter LG Electronics surprises the industry with news that it's developing an HD DVD drive.
March 31 -- Toshiba launches the world's first HD DVD player, the HD-XA1. It cost YEN 110,000 (US$936 at the time) in Japan.
November 11 -- Sony's PlayStation 3, which packs a Blu-ray Disc drive, goes on sale in Japan.
December 29 -- Hackers report success in breaking through part of the AACS copy protection that's on both HD DVD and Blu-ray Disc.
January 7 -- Seeking to end the battle, LG Electronics unveils a dual-format player, while Warner Brothers shows a prototype disc that holds both an HD DVD and Blu-ray Disc layer so is compatible with players for both formats.
April 17 -- Sales of HD DVD players in North America hit 100,000 since launch.
August 1 -- Microsoft cuts the price of its HD DVD player for the Xbox 360 from US$199 to US$179 and starts offering five free movies.
August 20 -- Paramount and Dreamworks Animation both drop Blu-ray Disc in favor of HD DVD.
September 13 -- Sony says it will use Blu-ray Disc in all high-def video recorders in Japan.
November -- The price of Toshiba HD DVD players drops to US$100 with rebates as the holiday shopping season begins.
November 11 -- Sony begins selling a lower cost version of the PlayStation 3.