Toshiba’s HD DVD exit costs $1-billion
Even 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.