HD DVD Failure To Cost Toshiba Almost $1 Billion March 15, 2008

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Reports from Japan are suggesting that the collapse of Toshiba’s HD DVD format will cost the company almost $1 billion dollars.

Despite the company’s share value rising when it first announced its surrender to the Blu-ray format, it seems the price of failure is sky high.

The Nikkei newspaper believes the losses will run to $995 million, but failed to disclose its sources. Toshiba refused to elaborate, in a statement:

"The company is currently assessing the possible losses. If we need to revise an earnings report, we will make an announcement at an appropriate time."

Toshiba will stop selling its HD DVD players at the end of the month which Nikkei claimed will cost around $500 million in dismantling its manufacturing set-up. The rest of the loss will be made up of unsold HD DVDs, players and the money spent on marketing and advertising HD DVD.-Martin Lynch

[AFP]

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