Toshiba's HD DVD exit costs $1-billion

Toshiba’s HD DVD exit costs $1-billion

Toshiba logoEven though Toshiba’s stock has been on the rise after they left HD DVD in the dust, they’re now predicting a loss of $666-million for FY2007.

Toshiba ditched their HD DVD business in February after Warner Bros. announced their plans to leave HD DVD and focus on Blu-ray Disc exclusively, leading to an industry-wide following including Netflix, Wal-Mart and Best Buy amongst others. With certain defeat in sight, Toshiba decided to cut their losses and focus on their existing DVD business as well as expanding their flash memory division.

They can use some extra development in flash memory as Toshiba is also expecting profits to be lower due to the falling prices. Together – with the losses of HD DVD and flash memory – Toshiba is facing $1-billion losses this year.

Hopefully they will be able to get past this quickly.

About Steven Kippel

Steven Kippel has worked as a systems designer for a leading high-end audio/video custom integrator in Southern California since 2003. He is responsible for researching new technologies and integrating them into existing systems and new construction projects. He has designed several high-profile systems for discriminating clients on the cutting-edge of technology. When he is not hard at work, Steven is spending time with his wife, playing with his band or promoting concerts and bands in the Inland Empire. His favorite bands include The Cure, U2, Eisley, Living Sacrifice and DragonForce.

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