Feeds

Sony, NEC to merge optical drive teams

Blu-ray backer forms JV with HD DVD supporter

The Power of One Brief: Top reasons to choose HP BladeSystem

Sony and NEC are to merge their respective optical drive divisions into a single ¥220bn ($1.9bn) jointly owned company, Sony NEC Optiarc, the two Japanese giants announced today. The move may pave the way for reconciliation between the two next-generation optical disc formats, Blu-ray Disc and HD DVD.

Sony will be the bigger of the two stakeholders in the joint venture. It will own 55 per cent of Sony NEC Optiarc, to NEC's 45 per cent. Indeed, the JV will be run by Sony staffer Shinichi Yamamura, currently deputy president of Sony's Video Business Group.

The two parents will spin out their respective optical drive businesses on 1 April before establishing the JV on 3 April. Sony NEC Optiarc will then take over the two spun out divisions.

Both Sony and NEC sit on separate sides of the fence when it comes to next-generation optical disc formats. Sony back Blu-ray, while NEC is an HD DVD supporter. Indeed, just as Sony was one of the minds behind its chosen format, NEC co-developed HD DVD with Toshiba. NEC has been instrumental in developing some of the earliest HD DVD reader and writer drives, and the division responsible will now be part of a company mostly owned by Sony.

Of course, the optical drive market extends much, much further than next-generation formats - the two divisions that will make up Sony NEC Optiarc yielded combined revenues of ¥220bn ($1.9bn) during their respective FY2004. ®

Using blade systems to cut costs and sharpen efficiencies

More from The Register

next story
Report: American tech firms charge Britons a thumping nationality tax
Without representation, too. Time for a Boston (Lincs) Macbook Party?
Child diagnosed as allergic to iPad
Apple's fondleslab is the tablet dermatitis sufferers won't want to take
Microsoft takes on Chromebook with low-cost Windows laptops
Redmond's chief salesman: We're taking 'hard' decisions
For Lenovo US, 8-inch Windows tablets are DEAD – long live 8-inch Windows tablets
Reports it's killing off smaller slabs are greatly exaggerated
Cheer up, Nokia fans. It can start making mobes again in 18 months
The real winner of the Nokia sale is *drumroll* ... Nokia
Seventh-gen SPARC silicon will accelerate Oracle databases
Uncle Larry's mutually-optimised stack to become clearer in August
prev story

Whitepapers

Seven Steps to Software Security
Seven practical steps you can begin to take today to secure your applications and prevent the damages a successful cyber-attack can cause.
Consolidation: The Foundation for IT Business Transformation
In this whitepaper learn how effective consolidation of IT and business resources can enable multiple, meaningful business benefits.
Designing a Defense for Mobile Applications
Learn about the various considerations for defending mobile applications - from the application architecture itself to the myriad testing technologies.
Build a business case: developing custom apps
Learn how to maximize the value of custom applications by accelerating and simplifying their development.
Consolidation: the foundation for IT and business transformation
In this whitepaper learn how effective consolidation of IT and business resources can enable multiple, meaningful business benefits.