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allargon

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Toshiba faces $986 mln loss on HD DVDs: Nikkei | Technology | Reuters

TOKYO (Reuters) - Japan's Toshiba Corp is likely to book a 100 billion yen ($986 million) loss in its high-definition DVD business and post a full-year operating profit of around 250 billion yen, falling short of its outlook, the Nikkei business daily said on Thursday.

Shares of Toshiba opened down 2.3 percent at 717 yen on the report.

Toshiba's decision to pull the plug on HD DVDs will entail production line changes and other charges that would double the 50 billion yen loss the electronics group had previously expected this business year on next-generation DVDs, the Nikkei said.

"We did not announce this, and therefore we cannot comment," a Toshiba spokeswoman said.

The industrial electronics group has said it expects an operating profit of 290 billion yen for the year through March, but executives said the outlook for the world's No.2 maker of NAND flash memory may be hurt by price falls in microchips and liquid crystal displays.

Since Toshiba's announcement, Japanese retailer Edion Corp has offered to swap HD DVD players purchased at its stores with rival format Blu-ray players, with consumers footing the retail price difference.

When Toshiba announced its withdrawal from HD DVDs last month, it had HD DVD agreements with studios including NBC Universal's Universal Pictures, Viacom Inc's Paramount Pictures and DreamWorks Animation SKG Inc

Shares of Toshiba were trading down 1.5 percent at 723 yen as of 0039 GMT, compared with the benchmark Nikkei average's 1 percent fall.
 
It could have been worse. They could have dragged it out further. Now they have to mend fences.
 
Actually, they've lost a whole lot more than a billion dollars. If Blu-ray eats into DVD sales, they'll be losing a lot of royalty revenues. And that, after all, was what they were fighting for.
 
Actually, they've lost a whole lot more than a billion dollars. If Blu-ray eats into DVD sales, they'll be losing a lot of royalty revenues. And that, after all, was what they were fighting for.

:up
 
Actually, they've lost a whole lot more than a billion dollars. If Blu-ray eats into DVD sales, they'll be losing a lot of royalty revenues. And that, after all, was what they were fighting for.

Toshiba actually gets royalties from every Blu-ray made because they play DVDs.
 
Toshiba actually gets royalties from every Blu-ray made because they play DVDs.

But little or nothing on the actual Blu-ray disks themselves. Toshiba is losing a major cash cow. Nothing is forever.
 
Absolutely. This has always been about future year sales. I doubt anybody has recouped development costs. Sales must go way up.
 
Toshiba has really not lost much to Blu-ray (1-2%). But, in the future it may worsen.
Key point its much less then 1-2% by the time you factor out all HD DVD sales.

Also when its all said and done Toshiba’s loss will be much less then what Sony will/has lost on the PS3, non story.
 
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And just think what Sony will make on BD. And on the PS3 as it becomes a profitable system (including games) and sales keep increasing.
 
And just think what Sony will make on BD. And on the PS3 as it becomes a profitable system (including games) and sales keep increasing.
"Including games" kinda changes our conversation mid stream, lets stay where we were.
 

Not so fast ... HD VMD V's Blu-Ray .. let the battle commence.

What will happen to Blu-ray hardware sales in 2008?

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