Toshiba lost $1bn ditching HD DVD, paper claims
Would have lost $500m on it otherwise
How much money has Toshiba lost driving failed high-def disc format HD DVD over the last 12 months? According to one report, a whopping ¥100bn ($998m).
Toshiba, not surprisingly, isn't commenting one way or the other on the scale of the loss its HD DVD business was this week alleged by Japanese newspaper Nikkei to be facing.
The paper also claimed that Toshiba's HD DVD operation would have lost ¥50bn had the consumer electronics giant not pulled the plug on the format. If Nikkei's numbers are correct - and we won't find out until Toshiba reports its full-year financial figures next month - it's clear that Toshiba's bosses believed to better to take a big loss now than continue losing money on the format.
Toshiba is expected to post a full-year profit of ¥250bn, Nikkei said, below the giant's own forecast of ¥290bn. Toshiba's current fiscal year ends on 31 March.
Judging by the numbers alone, the company would have made that prediction had it not canned HD DVD production, give or take.
Obituary: HD DVD 2002-2008
COMMENTS
@ Lev
.. Think the term, late starter comes to mind :o)
Reading a bit? Why certainly, i have been for the last 3 decades. Nothing has said "PS3 is the biggest flop in console history". Nope, not unless it's been written by someone who doesn't like it. Personally, I think it's doing well considering. It started later, yes. It doesn't have the same amount of games as per the XBox, yes. But then anything that has started late will not have the desired fan-base. It's a steady seller, even now (oh, I think you'll find it is).
Maybe one of the last Next gens released, but one of the most advanced next gens released.
Maybe you should read a little.. :op
@Levente Szileszky
PS3 has actually started outselling the 360 in some months, and hasn't been out nearly as long, etc etc. It's also been the fastest selling of the PlayStations, and you can hardly call the PSX or PS2 a failure now can you?
@ Levente
"Days after Toshiba pulled the plug on H DVD, suddenly Sony agreed to sell Toshiba the majority of it's Cell plant - you know, the CPU in PS3"
1- the contract was signed well before that date, it was the closing of the deal.
2- the plant builds the old version of the Cell, not the new die-shrunk version in current PS3s.
The Cell used in the current PS3s is made in a different plant, by IBM if I remember correctly. There is no connection between that Sony plant and Blu-ray.
I expect Toshiba didn't have much choice about killing HD DVD. Once WB pulled out I'm sure the major stock holders viewed selling HD DVD players below cost, without a good chance of "winning" as giving away 'their' money. When Toshiba took HD DVD out back and shot it the stock price went up.
Long vs short scale RE: Tony Trolle & Jamie Bunce
According to Wikipedia - see http://en.wikipedia.org/wiki/Long_and_short_scales - most countries of the world use the apparently more logical *long scale* (new terms is always 1,000,000x greater) which UK used until 1974 when, for whatever reason, they have switched to the US-styled *short scale* (only 1,000x greater).
Problem with short scale is not only very few countries actually use it - mostly English-speaking countries - but also its shortness: people barely know anything above trillion. Ask anyone here (US) on the street to describe 10^19 and you'll see people won't have a clue how to call it. Ask anyone in EU and most people will say trillion...
... however I'm for freedom - everybody has the right to make its own life more miserable the way he sees to fit, for example with extra conversions... but do you want to guess why Wall Street dropped the 18th century (aka old British system) and adopted decimals (aka 20th century) in late 2000? ;)
Re: Alex
"(PS3? A flop? Really? wow...)"
Ummm, yeah, it IS - it might be news for you - how about reading a bit? - but actually it's old news: Sony really ****d up this time, PS3 is biggest flop in modern console finance history, left waaaay behind by both of its competitors and even home, in Japan where it's getting a horrible beating from Nintendo's Wii.
