Taps for HD DVD as Wal-Mart Backs Blu-ray

[Kramer]

http://www.nytimes.com/2008/02/16/techn ... ref=slogin

that's crazy

[Lyion]

Good thing most of us backed the right format and didn't listen to the lone crazy advocate screaming about HD DVD...

http://www.reuters.com/article/technolo ... nologyNews

Toshiba to give up on HD DVD, end format war: source
Sat Feb 16, 2008 10:40am EST
By Mayumi Negishi and Kentaro Hamada

TOKYO (Reuters) - Toshiba Corp (6502.T: Quote, Profile, Research) 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 Corp (6758.T: Quote, Profile, Research), 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 Inc (WMT.N: Quote, Profile, Research) 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.

[Jay]

SHORT SALE ON TOSHIBA!!!

[Tossica]

SHORT SALE ON TOSHIBA!!!

I'm gonna buy me like every HD DVD for $1 each.

[Narrock]

SHORT SALE ON TOSHIBA!!!

I'm gonna buy me like every HD DVD for $1 each.

You better hurry... you won't be able to get em anymore past this summer.

[Jay]

I mean short sale in the investment sense. Short Sale = borrow x shares, sell immediately, wait for stock to plummett, buy shares back, return shares, pocket cash, pay off broker, buy a steak at Morton's.

[Tossica]

Ha, are you kidding? Toshiba stocks went up with the announcement of stopping production. They are a huge company and will likely take this beating in stride considering they still have DVD and all their other ventures including the Cell processor in the Sony PS3. Haha, the irony.

[Lyion]

They lost hundreds of millions of dollars. That has to hurt, regardless of the size of your company.

http://news.sky.com/skynews/xml/article ... 13,00.html

Toshiba announced Tuesday morning that it is calling time on HD DVD in the format war against Sony's Blu-ray, but why? Pocket-lint sat down with Olivier VanWynendaele - deputy general manager, HD DVD to find out more.

"To be very honest we have been reviewing the options since the Warner announcements, we are disappointed by their decision, but in that brief time, the industry has become unfavourable and our position was unsustainable", starts VanWYnendaele before moving on to suggesting the Wal-Mart decision on go Blu-ray only Friday as yet another "event that led us to this decision".

The HD DVD format, which lasted 3 years, might have been seen as the better of the two formats in many commentators' eyes but fell due to a lack of backing from the industry.

"It was not the consumers that chose Blu-ray over HD DVD it was the industry", comments VanWynendaele before saying that given the chance they wouldn't do anything different. "We firmly believe that we did it the right way."

Strange coming from a format that has just had the plug pulled on any future development.

As for those rumoured HD DVD player announcements, they never existed and of course never will.

"We never planned to announce any HD DVD players at CES 2008", VanWynendaele told Pocket-lint. "It would have been too early in the development cycle, but clearly following today's announcement, all development plans have been stopped."

Early adopters worried about warranties and firmware updates shouldn't be. Toshiba says that the players will be protected on the standard Toshiba warranty and that the company will continue to offer firmware updates when needed.

So what is the future of Toshiba and high definition?

According to VanWynendaele it is certainly not optical. Having told consumers that what they wanted was high-definition movies on disc, Toshiba has quickly changed its tune:

"Optical disks won't be the only way to enjoy HD movies in the future", VanWynendaele says before commenting that even though Sony's Blu-ray disc format was won the HD disc battle it won't be as "popular or as successful as DVD was over VHS".

"We are studying our strategy and looking to development. Things in this industry move fast. The world is changing, and that means consuming movies and content in lots of different ways rather than just on an optical format."

Toshiba instead is looking at storage options such as NAND storage and its miniature hard drive range found in Microsoft's Zune MP3 player to propel it forward rather than admitting complete defeat and start selling Blu-ray players.

"We have no plans to make Blu-ray players", said VanWynendaele.

As for how much the last 3 years has cost the company, VanWynendaele didn't have the figures but suggested reports on the Internet from Japanese broadcaster NHK suggest Toshiba would suffer losses running to tens of billions of yen (hundreds of millions of pounds) to scrap production of HD DVD players and recorders and other steps to withdraw from the business.

[Jay]

Their stock went up because of interest. I don't mean fiscal interest but rather buzz. Like dot com, buzz interest will make the stock plummet if there isn't substance behind it. Between failing at a format backing and losing hundreds of millions of invested dollars, it's inevitable that their stock will sink. I agree, Toss, that they are a huge company and in no danger of tanking, but you and I should both know the simple formula of losing money = being worth less than when you had the money. The risk of a short sale is buying back the stock before they recoop. If you wait too long you get cock slapped in the wallet and pretty easily bankrupted.

[Tossica]

My point was that the news of them dropping HD DVD was a relief to stockholders. The share prices went up because the financial drain of keeping the format afloat was gone.