Video Business reports that Star Wars: Episode III - Revenge of the Sith will skip a VHS release only to be released on DVD.

Distribution sources said recent Star Wars releases have seen heavy VHS returns from retailers unable to sell off the tapes. LucasFilm and Fox declined to comment other than to confirm that there would be no VHS version.

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So far, Fox and Buena Vista are the only studios to announce major releases only for DVD, however retailers are continuing to watch to see if other upcoming releases might get the same treatment.

Brian B. at Movieweb
Brian B.