"Toshiba Corp. said its profit plummeted 95 percent in the January-March quarter due to costs of its exit from next-generation video HD DVD business." $12 million profit, down from $251.57 million last year. Ouchies. [AP]
HD DVD Fallout: Nukes 95 Percent of Toshiba's Profits
5:51 PM on Fri Apr 25 2008
By matt buchanan
3,955 views
27 comments












Comments
"Ow. That kind of 'urt....really, quite painful."
hey thats a edited pic of dynasty warriors gundamn! I love that game!
They'll bounce back, giving us efficient bulbs for the masses!
Bitch slapped!
My local Best Buy still has a couple X-Box 360 HD DVD players for sell at $49.95. Of course they don't have any HD-DVD's for sale. I'll pick one up when they give them away, otherwise it's a waste of money. Hey, thats twelve and a half gallons of gas!
owned!
Oh dear: That's barely enough profit to give the President and the CEO fat bonuses!
Ha! Everyone says I went "BetaMax" after my HD-DVD player became obsololete,
but I have saved more then enough money from the price cutting on HD-DVD's to pay for a blu-ray player (PS3, actually).
Planet Earth? Half price. 12 Monkeys? 16 bucks. Dune? Ditto. Fear And Loathing In Las Vegas? Ditto. Good Will Humping? Ditt... ummm, nevermind.
"HyperEric... clutching victory from the jaws of Defeat for 36 years!"
@JBKing: where are you and what kind of car do you drive..
@Mandatory_Field: this is Japan, Inc. we are talking about, not Amurica. Over there, when they screw up, they don't get fat bonuses, they fall on their swords for bringing dishonor to their company.
Of course, they should have thought of the possibility of losing BEFORE they started a format war.
@JBKing: Best Buy employs mostly idiots (I say mostly only because I'm trying not to offend other readers) I stay away from them at all cost (which isn't much because their prices suck too, unless you're buying a shitty product).
@shamoononon: Not to mention the moron squad. WAYYYY of subject so I'll leave now.
It's not so much that they lost profit, but that they made negative profit...
if they had just stopped making HD-DVD players they would have been better off than they ended up. They spent all of 2007 behind BluRay in disk sales...and their "solution" was to keep manufacturing HD-DVD players and selling them for less than they cost to manufacture...they did that for months. They even bought a pricey superbowl ad for HD-DVD when the ware was basically over.
Of course, with expensive "last-ditch" efforts like that, they knew the risk...
I wonder how's that compared to when Betamax failed... probably way worse.
At least if you judge it from what the media says.
I still don't understand why they can't make at least some profit with the format.
Ok, no movie studio will support it, but I don't mean that way... they could like continue making HD-DVD as storage media only.
Sell HD-DVD burners and HD-DVD-R(?) for cheap...
HD-DVDs are still cheaper to make, both the discs and the drives... are they not?
But whatever.... probably isn't that cost-effective.
I'm no MBA, but I think Toshiba has about
*Dr. Evil voice*
ONE BILLION DOLLARS
*stop Dr. Evil voice*
to make up in profits for the rest of the year... they need some friggin' lasers.
[www.bloomberg.com]
Now that the sting of HD-DVD is out of the way that shouldn't impact $ down the line right?
Funny thing is that now that blu-ray sales haven't picked up very much since the demise of hd-dvd, analysts are now starting to wonder if maybe a lot of those PS3's they were counting as part of blu-ray's install base are maybe being used primarily as *gasp* game machines instead of movie players. Gee.... ya think?
It would be funnier still if blu-ray ended up losing the format war to downloadable content after dispatching hd-dvd so swiftly. Sure it's going to be a while before downloadable is feasible for the mass market, but the shift from DVD to blu-ray is moving at a snail's pace as well.
@robinandtami: They've tripled over the last three months.
Let em start making Xboxs
@Knight-Zero:
Actually, "analysts" have "projected" they will triple during they full year of 2008. We have not seen this as of yet.
I don't really feel for them. It's their own fault for being incredibly stubborn and supporting a product that was doomed to failure since the very beginning. I guess it was obvious to everyone but them.
I jumped on the Toshiba HDDVD bandwagon with this November's $98 price tag. I was in hopes that a lower price tag on the format meant that it might win market share.
Months later I returned the player to Wal-Mart for a full refund (thanks Giz).
A non-refurb, $150 Blu-Ray player this holiday season? (fingers crossed)
@robinandtami: The shift from DVD to Blu-ray is comparable to the shift from VHS to DVD at the same point after the newer technology's emergence.
@k9bits: No. Sony has said that they won't get below $200 until 2009 at the earliest. They won and now they are raping consumers as best they can.
Maybe I'm missing something, but seriously - they still made a profit in light of LOSING the format war! Although it has to be rough, compare that to companies like, say, Sprint, who posted a near $30billion loss in one quarter, and this makes a statement in my mind that Toshiba, while troubled, still is better run than your average US telco.
Sony and their proprietary formats...too bad the plan is to hold out that long.
I wonder who's buying the blu-ray discs? The PSP format didn't vie too well but I never had one so who's to say.
I'm excited about the new Oppo 983!
@segamanxero:
An edited pic of....WHAT??
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