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Death of HD-DVD: Toshiba expected to make official announcement 02/19/08

Pelvis Popcan

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http://www.engadgethd.com/2008/02/1...-announce-death-of-hd-dvd-tomorrow-stop-sale/

Toshiba expected to announce death of HD DVD tomorrow, stop sales by March
Posted Feb 18th 2008 2:01PM by Ryan Block
Filed under: HD DVD, Toshiba

Despite Red's inability to make any real public statement, Japanese publication Nikkei has it that Toshiba president Atsutoshi Nishida will be announcing the final discontinuation of HD DVD tomorrow, as well as halted sales of hardware and media by March (as in days from now). Apparently Toshiba will pull its units from retail shelves, but has no intention to give burned early adopters any refunds (no kidding?); it sounds like the ceasefire will include the bare PC drives as well, so those hoping to keep using HD DVD as a personal data storage medium probably won't have much luck. Apparently the announcement will come alongside Toshiba's plans to build new semiconductor fabs, which we're sure they'll try to spin as an advancement that far overshadows the hill of beans (read: hundreds of millions) they've lost in the format war. [Warning: subscription required.]

Update: Nikkei also has it that the press conference is scheduled for 5PM in Tokyo, which is Midnight PT, and 3am ET. We'll let you know what turns up. Thanks to everyone who sent this in.

:(
 
Here's the official announcement in English:

http://www.toshiba.co.jp/about/press/2008_02/pr1903.htm

Toshiba Announces Discontinuation of HD DVD Businesses
19 February, 2008

Company Remains Focused on Championing Consumer Access to High Definition Content

TOKYO--Toshiba Corporation today announced that it has undertaken a thorough review of its overall strategy for HD DVD and has decided it will no longer develop, manufacture and market HD DVD players and recorders. This decision has been made following recent major changes in the market. Toshiba will continue, however, to provide full product support and after-sales service for all owners of Toshiba HD DVD products.

HD DVD was developed to offer consumers access at an affordable price to high-quality, high definition content and prepare them for the digital convergence of tomorrow where the fusion of consumer electronics and IT will continue to progress.

"We carefully assessed the long-term impact of continuing the so-called 'next-generation format war' and concluded that a swift decision will best help the market develop," said Atsutoshi Nishida, President and CEO of Toshiba Corporation. "While we are disappointed for the company and more importantly, for the consumer, the real mass market opportunity for high definition content remains untapped and Toshiba is both able and determined to use our talent, technology and intellectual property to make digital convergence a reality."

Toshiba will continue to lead innovation, in a wide range of technologies that will drive mass market access to high definition content. These include high capacity NAND flash memory, small form factor hard disk drives, next generation CPUs, visual processing, and wireless and encryption technologies. The company expects to make forthcoming announcements around strategic progress in these convergence technologies.

Toshiba will begin to reduce shipments of HD DVD players and recorders to retail channels, aiming for cessation of these businesses by the end of March 2008. Toshiba also plans to end volume production of HD DVD disk drives for such applications as PCs and games in the same timeframe, yet will continue to make efforts to meet customer requirements. The company will continue to assess the position of notebook PCs with integrated HD DVD drives within the overall PC business relative to future market demand.

This decision will not impact on Toshiba's commitment to standard DVD, and the company will continue to market conventional DVD players and recorders. Toshiba intends to continue to contribute to the development of the DVD industry, as a member of the DVD Forum, an international organization with some 200 member companies, committed to the discussion and defining of optimum optical disc formats for the consumer and the related industries.

Toshiba also intends to maintain collaborative relations with the companies who joined with Toshiba in working to build up the HD DVD market, including Universal Studios, Paramount Pictures, and DreamWorks Animation and major Japanese and European content providers on the entertainment side, as well as leaders in the IT industry, including Microsoft, Intel, and HP. Toshiba will study possible collaboration with these companies for future business opportunities, utilizing the many assets generated through the development of HD DVD.
 
Finally War ended..too bad HD Dvd didn't win. Nevertheless no more dual format anymore. Accroding one article Universal will now switch to Blu-ray as well.

LOS ANGELES - General Electric Co.'s Universal Pictures, one of a few studios using the Toshiba Corp.-backed HD DVD format, said on Tuesday it will switch to the rival Blu-ray format now that Toshiba has officially pulled the plug on HD DVD.

(Msnbc.com is a joint venture of Microsoft and NBC Universal.)

Officials from other HD DVD backers, like Viacom Inc.'s Paramount Pictures and DreamWorks Animation SKG Inc., had no immediate comment.

"The path for widespread adoption of the next-generation platform has finally become clear," Craig Kornblau, President, Universal Studios Home Entertainment and Universal Pictures Digital Platforms, said in a statement.

"The emergence of a single, high-definition format is cause for consumers, as well as the entire entertainment industry, to celebrate. While Universal values the close partnership we have shared with Toshiba, it is time to turn our focus to releasing new and catalog titles on Blu-ray," he said.

Universal Pictures had no further comment.

Toshiba finally threw in the towel on Tuesday after losing support of key studios and retailers to the Blu-ray technology backed by Sony Corp.

Both sides had aimed to set the standard for the next generation of discs, but the fight had only confused shoppers.

A key turning point in the war came last month when Time Warner Inc.'s Warner Bros., which had backed both formats, decided to support Blu-ray exclusively.

Since then, big U.S. retailers also aligned with Blu-ray, including Wal-Mart Stores Inc., Best Buy Co. Inc. and online video rental company Netflix Inc.
 
Hi-def battle ends as Toshiba quits HD DVD

Here is offical News of ending HD-Dvd Support.

http://www.msnbc.msn.com/id/23204819/wid/11915829?GT1=10939

Contents, in case orignal link is not working

TOKYO - Toshiba said Tuesday it will no longer develop, make or market HD DVD players and recorders, handing a victory to rival Blu-ray disc technology in the format battle for next-generation video.

"We concluded that a swift decision would be best," Toshiba President Atsutoshi Nishida told reporters at his company's Tokyo offices.

The move would make Blu-ray — backed by Sony Corp., Matsushita Electric Industrial Co., which makes Panasonic brand products, and five major Hollywood movie studios — the winner in the battle over high-definition DVD formatting that began several years ago.

Nishida said last month's decision by Warner Bros. Entertainment to release movie discs only in the Blu-ray format made the move inevitable.

"That had tremendous impact," he said. "If we had continued, that would have created problems for consumers, and we simply had no chance to win."

Warner joined Sony Pictures, Walt Disney Co. and News Corp.'s Twentieth Century Fox in that move.

1 million own defunct players
Nishida said his company had confidence in HD DVD as a technology and tried to assure the estimated 1 million people, including some 600,000 people in North America, who already bought HD DVD machines by promising that Toshiba will continue to provide product support for the technology.

Both HD DVD and Blu-ray deliver crisp, clear high-definition pictures and sound, which are more detailed and vivid than existing video technology. They are incompatible with each other, and neither plays on older DVD players. But both formats play on high-definition TVs.

HD DVD was touted as being cheaper because it was more similar to previous video technology, while Blu-ray boasted bigger recording capacity.

Only one video format has been expected to emerge as the victor, much like VHS trumped Sony's Betamax in the video format battle of the 1980s.

Nishida said it was still uncertain what will happen with the Hollywood studios that signed to produce HD DVD movies, including Universal Studios, Paramount Pictures and DreamWorks Animation.

Shipments to end by March
Toshiba's pulling the plug on the technology is expected to reduce the number of new high-definition movies that people will be able to watch on HD DVD machines. Toshiba Corp. said shipments of HD DVD machines to retailers will be reduced and will stop by end of March.

Sales in Blu-ray gadgets are now likely to pick up as consumers had held off in investing in the latest recorders and players because they didn't know which format would emerge dominant.

Despite being a possible blow to Toshiba's pride, the exit will probably lessen the potential damage in losses in HD DVD operations. Goldman Sachs has said pulling out would improve Toshiba's profitability between $370 million-$460 million a year.

The reasons behind Blu-ray's triumph over HD DVD are complex, as marketing, management maneuvers and other factors are believed to have played into the shift to Blu-ray's favor that became more decisive during the critical holiday shopping season.

Wave of defections
Once the balance starts tilting in favor of one in a format battle, then the domination tends to grow and become final, said Kazuharu Miura, an analyst at Daiwa Institute of Research in Tokyo.

"The trend became decisive I think this year," he said. "When Warner made its decision, it was basically over."

With movie studios increasingly lining up behind Blu-ray, retailers also began to stock more Blu-ray products.

Friday's decision by Wal-Mart Stores Inc., the largest U.S. retailer, to sell only Blu-ray DVDs and hardware appeared to deal a final blow to the Toshiba format. Just five days earlier, Netflix Inc. said it will cease carrying rentals in HD DVD.

Several major American retailers had already made similar decisions, including Target Corp. and Blockbuster Inc.

Also adding to Blu-ray's momentum was the gradual increase in sales of Sony's PlayStation 3 home video-game console, which also works as a Blu-ray player. Sony has sold 10.5 million PS3 machines worldwide since the machine went on sale late 2006.

HD DVD supporters included Microsoft Corp., Intel Corp. and Japanese electronics maker NEC Corp.

(Msnbc.com is a joint-venture of Microsoft and NBC Universal.)

Microsoft's Xbox 360 game machine can play HD DVD movies, but the drive had to be bought separately, and Nishida said about 300,000 people have those.

Worldwide sales of personal computers with HD DVD drives total about 300,000 worldwide, including 140,000 in North America and 130,000 in Europe, he said.

Toshiba to concentrate on flash memory
Recently, the Blu-ray disc format has been gaining market share, especially in Japan. A study on fourth quarter sales last year by market researcher BCN Inc. found that by unit volume, Blu-ray made up 96 percent of Japanese sales.

Sony said it did not have numbers on how many Blu-ray players had been sold globally.

Toshiba's stock slipped 0.6 percent Tuesday to 824 yen after jumping 5.7 percent Monday amid reports that a decision was imminent. Sony shares climbed 2.2 percent to 5,010 yen after rising 1 percent Monday.

Also Tuesday, Toshiba said it plans to spend more than 15.7 billion for two plants in Japan to produce sophisticated chips called NAND flash memory, which are used in portable music players and cell phones. Production there will start in 2010.
 
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