Print 74 comment(s) - last by gochichi.. on Mar 1 at 11:18 PM

The 90nm Cell/B.E. package as found in the PlayStation 3, now to be manufactured by Toshiba.  (Source: DailyTech)
Sony gives Toshiba something in return for its troubles -- Japanese Cell chip plants for $835M

A new twist has emerged with the death of HD DVD.  After Warner, Best Buy, Walmart and Netflix jumped on the Blu bandwagon, the fate of HD DVD was already sealed.

Despite the grim news, the principal HD DVD developer, Toshiba Corporation, refused to initially comment on its plans for its HD DVD.  However, as many analysts predicted, Toshiba came out last week and officially surrendered to Blu-ray

Many saw Toshiba's willingness to give up on HD DVD as a logical business decision and perhaps an admission of Blu-ray's superiority.  However, there might be a little more to the story.  Reuters reports that on Wednesday Toshiba and Sony Corporation, one of Blu-ray's principal developers, agreed to a major business deal, reached just after Toshiba made its final HD DVD decision.

Sony agreed to sell it microchip processing facilities in western Japan for approximately $835M USD.  These facilities currently produce Cell processors and RSX graphic chips.  Toshiba will enter the joint venture with Sony on April 1, 2008.

Toshiba, IBM and Sony were the principal developers of the Cell microprocessor, but Toshiba previously showed little interest in using the chip for any of its own projects.  Sony touts the Cell broadband engine in its Playstation 3 consoles; IBM uses the Cell processor in high performance computing clusters.  Toshiba has vowed to now use the Cell in its upcoming products.

While Toshiba and Sony entered into talks back in October 2007 and reached a tentative agreement to sell the cell facilities, the two companies continued to haggle about the price.  Sony's concession of what is considered a favorable price for Toshiba will likely strike many following Toshiba's drop as HD DVD as more than a coincidence, and perhaps a sign of an informal agreement.

The other interesting aspect of the move is that it indicates a clear shift by Toshiba to back the PS3.  The PS3, which last month outsold Microsoft's Xbox 360, previously had few ties to the company; while Microsoft's number one ally in hardware manufacturing has always been Toshiba.  Toshiba manufacturers several components for the Xbox 360, including the HD DVD add-on, and the Microsoft Zune MP3 players.

Toshiba's flip-flop may have been in the cards for a while.  Microsoft showed little remose as HD DVD took second place to Blu-ray; a move Toshiba must have recognized from its American ally.  Now the solidified PS3 venture between Sony and Toshiba indicates that Toshiba now has switched to backing the PS3 almost exclusively, another victory for Sony.

Comments     Threshold

This article is over a month old, voting and posting comments is disabled

RE: Business is complex.
By ViperROhb34 on 2/24/2008 11:40:43 AM , Rating: 3
I agree Toshiba is just needing a income source. MS already has plenty of fab plants..

Lets get back to reality here.

Bluray was chosen because it was the logical choice between two formats (" netiher was selling well * ) but HD-DVD and BLURAY Combined accounted for a puny .8 of one percent of movie sales. It was either choose bluray or watch both fail - and movie studios saw this coming.

The PS3 is in 3rd place in games per console. They also have the least highest rated games, and the least games out for their console.- even though Wii was out around the same time.

The PS3 needs to outsell the Xbox every month starting now ( which it isnt doing yet ) by 85,000 consoles ( again every month ) to pass the 360 in total sales in 6.5 yrs !

This is unlikely to happen because the new Xbox is slated to be announced in 2010.. it'll make the PS3 look outdated much earlier then Sony's old 10 yr plan, in which PS2 had no real competition its first 4 yrs out..

RE: Business is complex.
By hduser on 2/24/2008 4:26:59 PM , Rating: 1
Wii has higher quality games right now because it's essentially a gussied up Gamecube. The learning curve to program it wasn't all that high compared to shifting from the PS2 to the PS3.

RE: Business is complex.
By BladeVenom on 2/24/2008 4:34:23 PM , Rating: 2
The PS3 needs to outsell the Xbox every month starting now ( which it isnt doing yet ) by 85,000 consoles ( again every month ) to pass the 360 in total sales in 6.5 yrs !

If the rate of sales so far this year continue, it will happen. Over just the last 4 weeks PS3 outsold the 360 by over 200,000.

RE: Business is complex.
By KristopherKubicki on 2/24/2008 8:01:42 PM , Rating: 2
According to Microsoft, and my own experience, there is a huge 360 shortage right now. I don't know if that's enough to account for the difference, but I'm sure that affected 360 sales.

RE: Business is complex.
By stinkyj on 2/29/2008 11:27:15 AM , Rating: 2
This 'shortage' talk is a little long in the tooth methinks.

I was at Best Buy in Cary last night and they had at least 6 on the shelves.

Amazon shows in stock. Wal-mart, target search at B&M show available.

Might have been a small shortage before. seems ok now, guess the boat from China arrived w/ resupplies. Game on!

RE: Business is complex.
By 67STANG on 2/25/2008 11:12:54 AM , Rating: 2
Well, let's see.... everyone in the market now looking for a HD movie player platform will be buying a BD player. If you look on BestBuy.Com, the cheapeast BD player that comes up is the PS3... and it's one of the few players that can be considered a BD 2.0 player... And it can play games too you say? I think the XBox will be overtaken IMHO.

"When an individual makes a copy of a song for himself, I suppose we can say he stole a song." -- Sony BMG attorney Jennifer Pariser

Latest Headlines
Inspiron Laptops & 2-in-1 PCs
September 25, 2016, 9:00 AM
The Samsung Galaxy S7
September 14, 2016, 6:00 AM
Apple Watch 2 – Coming September 7th
September 3, 2016, 6:30 AM
Apple says “See you on the 7th.”
September 1, 2016, 6:30 AM

Most Popular ArticlesAre you ready for this ? HyperDrive Aircraft
September 24, 2016, 9:29 AM
Leaked – Samsung S8 is a Dream and a Dream 2
September 25, 2016, 8:00 AM
Inspiron Laptops & 2-in-1 PCs
September 25, 2016, 9:00 AM
Snapchat’s New Sunglasses are a Spectacle – No Pun Intended
September 24, 2016, 9:02 AM
Walmart may get "Robot Shopping Carts?"
September 17, 2016, 6:01 AM

Copyright 2016 DailyTech LLC. - RSS Feed | Advertise | About Us | Ethics | FAQ | Terms, Conditions & Privacy Information | Kristopher Kubicki