I am sure those of you who are following the HD DVD situation avidly are aware of this latest development, but for many of us who have been less careful in keeping track, here is the latest:The Business of TelevisionToshiba Pulls Plug On HD DVD
By Greg Tarr, TWICE
Tokyo – Toshiba officially said Tuesday that after a “thorough review of its overall strategy” it had decided to no longer develop, manufacture and market HD DVD players and recorders.
Toshiba said its decision was due to “recent major changes in the market” which included Netflix
, Best Buy
backing Blu-ray last week, and a flurry of anonymous speculation this past weekend. The company said it will continue to provide full product support and after-sales service for all owners of Toshiba HD DVD products.
“We carefully assessed the long-term impact of continuing the so-called 'next-generation format war' and concluded that a swift decision will best help the market develop,” stated Atsutoshi Nishida, Toshiba president and CEO. “While we are disappointed for the company and more importantly, for the consumer, the real mass market opportunity for high definition content remains untapped and Toshiba is both able and determined to use our talent, technology and intellectual property to make digital convergence a reality.”
Going forward, Toshiba said it will “continue to lead innovation, in a wide range of technologies that will drive mass market access to high definition content. These include high capacity NAND flash memory, small form factor hard disk drives, next generation CPUs, visual processing, and wireless and encryption technologies.”
The company expects to make forthcoming announcements around strategic progress in these convergence technologies.
Toshiba will now begin to reduce shipments of HD DVD players and recorders to retail channels, and expects to be out of the HD DVD business by the end of March 2008.
This include ending volume production of HD DVD disk drives for PCs and video game players in the same timeframe, but “will continue to make efforts to meet customer requirements.”
“The company will continue to assess the position of notebook PCs with integrated HD DVD drives within the overall PC business relative to future market demand,” Toshiba said.
The decision will not include the company’s commitment to standard DVD, and the company will continue to market conventional DVD players and recorders, and will continue to contribute to the development of the DVD industry through its membership in the DVD Forum, which is the 200-member international organization involved with defining optimum optical disc formats for the consumer and the related industries.
The company said it also intends to maintain “collaborative relations with the companies who joined with Toshiba in working to build up the HD DVD market, including Universal Studios, Paramount Pictures, and DreamWorks Animation and major Japanese and European content providers on the entertainment side, as well as leaders in the IT industry, including Microsoft, Intel, and HP.”
Toshiba will study possible collaboration with these companies for future business opportunities, utilizing the many assets generated through the development of HD DVD.http://www.twice.com/index.asp?layou...leID=CA6533280