It seems appropriate that after striking the fatal blow in the war between HD DVD and Blu-ray, Warner is the first to break rank and ally itself with the China Blue HD team. Ready to enter the ordinary Chinese consumer's family, according to Managing Director Tony Vaughan, the Harry Potter series, Speed Racer and others will launch for 50-70 yuan ($7.30 - $10.22) per disc. Excuse us while we pick our jaws up from the floor, but with at least one Hollywood studio in pocket and 1999 yuan ($292) players on the way the son of HD DVD looks remarkably closer to a real Blu-ray competitor (and less like the destined for the scrap heap reject we predicted) than ever. With DVD sales shrinking and Blu-ray not quite ready to pick up the slack, how long until another studio decides the Chinese market has enough potential to publish movies on CBHD? [Disclosure: Engadget is part of the Time Warner family]

[Via Format War Central]

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