Toshiba on the verge of throwing in the towel.

[Xecutiona]

from Reuters. (http://uk.reuters.com/article/businessNews/idUKL1643184420080217?feedType=RSS&feedName=businessNews&pageNumber=2&virtualBrandChannel=0)

By Mayumi Negishi and Kentaro Hamada
TOKYO (Reuters) - Toshiba (6502.T: Quote (http://uk.reuters.com/stocks/quote?symbol=6502.T), Profile (http://uk.reuters.com/stocks/companyProfile?symbol=6502.T), Research (http://uk.reuters.com/stocks/researchReports?symbol=6502.T)) is planning to give up on its HD DVD format for high definition DVDs, conceding defeat to the competing Blu-Ray technology backed by Sony (6758.T: Quote (http://uk.reuters.com/stocks/quote?symbol=6758.T), Profile (http://uk.reuters.com/stocks/companyProfile?symbol=6758.T), Research (http://uk.reuters.com/stocks/researchReports?symbol=6758.T)), a company source said on Saturday.
The move will likely put an end to a battle that has gone on for several years between consortiums led by Toshiba and Sony vying to set the standard for the next-generation DVD and compatible video equipment.
The format war, often compared to the Betamax-VHS battle in the 1980s, has confused consumers unsure of which DVD or player to buy, slowing the development what is expected to be a multibillion dollar high definition DVD industry.
Toshiba's cause has suffered several setbacks in recent weeks including Friday's announcement by U.S. retailing giant Wal-Mart Stores (WMT.N: Quote (http://uk.reuters.com/stocks/quote?symbol=WMT.N), Profile (http://uk.reuters.com/stocks/companyProfile?symbol=WMT.N), Research (http://uk.reuters.com/stocks/researchReports?symbol=WMT.N)) that it would abandon the HD DVD format and only stock its shelves with Blu-ray movies.
A source at Toshiba confirmed an earlier report by public broadcaster NHK that it was getting ready to pull the plug.
"We have entered the final stage of planning to make our exit from the next generation DVD business," said the source, who asked not to be identified. He added that an official announcement could come as early as next week.
No one answered the phone at Toshiba's public relations office in Tokyo.
NHK said Toshiba would suffer losses running to tens of billions of yen (hundreds of millions of dollars) to scrap production of HD DVD players and recorders and other steps to withdraw from the business.

Hollywood studios had initially split their alliances between the two camps, meaning only certain films would play on any one DVD machine.
The balance of power tipped decisively toward the Sony camp in January after Time Warner Inc's (TWX.N: Quote (http://uk.reuters.com/stocks/quote?symbol=TWX.N), Profile (http://uk.reuters.com/stocks/companyProfile?symbol=TWX.N), Research (http://uk.reuters.com/stocks/researchReports?symbol=TWX.N)) Warner Bros studio said it would only release high-definition DVDs in Blu-ray format. With that, studios behind some three-quarters of DVDs are backing Blu-ray, although some release in both formats.
Toshiba responded by slashing prices of HD DVD players, but the loss of retail support has hurt.
In addition to Wal-Mart, consumer electronics chain Best Buy Co Inc (BBY.N: Quote (http://uk.reuters.com/stocks/quote?symbol=BBY.N), Profile (http://uk.reuters.com/stocks/companyProfile?symbol=BBY.N), Research (http://uk.reuters.com/stocks/researchReports?symbol=BBY.N)) and online video rental company Netflix Inc (NFLX.O: Quote (http://uk.reuters.com/stocks/quote?symbol=NFLX.O), Profile (http://uk.reuters.com/stocks/companyProfile?symbol=NFLX.O), Research (http://uk.reuters.com/stocks/researchReports?symbol=NFLX.O)) also recently signed up to the Blu-ray camp.
The exclusive backing of Microsoft (MSFT.O: Quote (http://uk.reuters.com/stocks/quote?symbol=MSFT.O), Profile (http://uk.reuters.com/stocks/companyProfile?symbol=MSFT.O), Research (http://uk.reuters.com/stocks/researchReports?symbol=MSFT.O)) was also put in doubt when the software giant said in January that it could consider supporting Blu-ray technology for its Xbox 360 video game machine, which currently works only with HD DVD.
Sony has spent large sums of money to promote Blu-ray in tandem with its flat screen TVs and its PlayStation 3 game console, which can play Blu-ray movies.
The Toshiba source said the experience would not be a total loss for the sprawling conglomerate, whose products range from refrigerators to power plants, which would learn valuable lessons.
"Marketing was a weak point for Toshiba. We learned a lot from HD DVD. Strengthening marketing will continue to be an issue for us going forward," the source said

[ecktt]

Hurray for sony!
About time they win a format War.

[Xecutiona]

i see a betamax player te other day...apparently the last one sold was in 2002 :S

[mojo]

Grim times ahead...

The demise of a superior more "open" HD format to the likes of Sony's proprietary blu ray format. A huge win for Sony on the other hand. This victory may very well save them from the financial misfortune that was the PS3. As things turn out, the PS3 is now the best value for money HD format movie player on the market! kudos to Sony for arse raping the entire consumer population!

For those of us who were not familiar with the format wars, this means that we all will have to pay more for hi def players and movies from now since the only format that might survive is blu ray. blu ray discs cost more to manufacture than hd dvd and licensing for usage of the format (for both discs and players) costs more as well.

Hopefully when prices hit rock bottom, I can cash in and get myself an HD DVD player and preserve this important piece of history!

[eddoes]

nice. i love it. i always supported sony . They make good reliable ( at least in my experiance ) stuff. Why should we sulk @ quality?

kinda ironic though. i was watching a console tingy on tech tv a day and they did a documentary on the sega. turns out it busted cause sony ingeniously decided to integrate dvd playback capabilities with the ps2. now the ps3 should survive because of blue-ray.

Sony would not really have felt the loss incurred from the ps3...i mean they have plenty other stuff going for them...

simple economics...starve area A so that area B can progress...(i hate that theory though....thas why we have places like laventille.....)

nice marketing from sony...

[Xecutiona]

the ps3 hasnt been a financial misfortune....10 million plus consoles in one year isnt bad...it sold more ps3s than xboxes for 2007 worldwide.

1080i hd dvd players vs 1080p blu ray players...some films differ from others, but the technology and quality is on blu ray's side.

cheapness and the interactivity are on hd dvd's side, but sony used the playstation "backdoor" again to bludgeon them....

how did they arse rape the consumer? by making one propietary high definition format? i would assume that prolonging the "war" and confusing customers as to "which one to choose" was more harmful to them than having one clear choice.

blu ray laser costs were cut 70% from the original players/ps3 systems, so u can expect to see lower priced blu ray players out soon, especially from he other electronics companies behind the format.

now is rock bottom man...this is the hd dvd firesale! <100 USD for a player with 5 free hd dvds

and btw, all the paramount/dreamworks exclusives to jump to blu ray by august.

michael bay would be proud!!!

[ecktt]

BR and HD were two suite cut from the same effin cloth! Sony just managed to squeeze more Data per disk, which is why I supported them. Everything else was software which in all eventuality would have been hacked out.

[Xecutiona]

It is over! The format war between Blu-ray and HD-DVD has come to an end! On NHK, Japanese TV, a reporter for the channel has made the announcement that Toshiba will halt production of HD-DVD players and conceding a loss to the Blu-ray group. He said that Toshiba will be making the formal announcement within a few days. With Blu-ray featuring a commanding lead over HD-DVD worldwide, the choice was beyond obvious. It's estimated that Blu-ray commands 90% of the high-definition market, and with 10 million PlayStation 3s out there, it's certainly a big boost for the format. Additionally, with retailers and studio support dropping left and right, HD-DVD had no ground to stand on anymore. Toshiba will continue to liquidate HD-DVD stock, but production has been officially ended.
This loss could cost Toshiba an unspecified figure of hundreds of millions US dollars. Hopefully, Toshiba will be able to recooperate much of that loss with their Blu-ray products. As we reported earlier, it looks like Toshiba is planning Blu-ray players of their own to go on sale this Summer.

[deathwinger]

So what happens to individuals who have laptops that have a HD DVD burner? Total loss?

[Doobs]

who tell dem buy that? lol

[LARUTO]

as cool as it may feel, it's never financially viable to be an innovator where new technology is concerned