Toshiba: Goodbye HD DVD, Hello New Blu-Ray Killer?

Toshiba took a huge gamble with its investment in HD DVD and the company lost big time -- reports claim they took a bath to the tune of up to a billion dollars.

But it looks like they're going to give it another go.

Crediting unnamed sources at Toshiba, Japanese daily Yomiuri is reporting that the company is working on a new DVD format extension that will feature quality that compares to both HD DVD and Blu-ray.

Yahoo reports that the rumored players will be priced lower than the current Blu-ray structure.

Like both high definition formats, the Toshiba offering would be backwards-compatible with standard format DVDs.

However, the company has yet to officially respond to the report, so it must be treated simply as rumor for the time being.