After HD DVD Drop, Toshiba Spends $835M to Back PS3
February 23, 2008 12:46 PM
comment(s) - last by
The 90nm Cell/B.E. package as found in the PlayStation 3, now to be manufactured by Toshiba.
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.
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
This article is over a month old, voting and posting comments is disabled
RE: what does this change exactly
2/24/2008 11:46:53 AM
PS3 needs to outsell Xbox 360 by 85,000 units a month for the next 6.5 yrs just to break even !
Secondly, MS has plenty of fab plants making their CPU's and GPU's .. they don't need Toshiba to do that.
Lastly, how outdated with the PS3 look in 2010 when MS and Nintendo come out with new consoles ? Those consoles could also use BLuray - if it indeed survives.
Bluray was chosen solely because neither HD media was selling well.. Movie studios were set to lose millions if both formats failed..
right now Bluray sales account for about .4 of one percent of movie sales - not an impressive figure, but we'll have to see how much that changes in the next 2 yrs.. or you'll see an Xbox with a bluray player ..
"So if you want to save the planet, feel free to drive your Hummer. Just avoid the drive thru line at McDonalds." -- Michael Asher
Microsoft Calm About HD DVD Defeat
February 19, 2008, 4:51 AM
Update: Toshiba Comments on HD DVD, Decisions Imminent
February 18, 2008, 12:14 AM
Toshiba Officially Surrenders in HD Format War
February 19, 2008, 7:46 AM
PS3 Outsells Xbox 360, Bested Only by Wii in January Sales
February 15, 2008, 9:26 AM
Netflix Picks Blu-ray Disc as Exclusive HD Format
February 11, 2008, 7:21 AM
Apple Says Nude Celebrity Photo Dump Wasn’t Result of iCloud, Find My iPhone Breach
September 2, 2014, 3:26 PM
BlackBerry Passport Flagship Smartphone to be Officially Announced September 24
September 2, 2014, 2:36 PM
Google Plans Small Updates to Make Android Wear Smartwatches More Self-sufficient
September 2, 2014, 11:00 AM
webOS Reborn as LuneOS ROM for Select Android, webOS Devices
September 2, 2014, 10:47 AM
Sony Xperia Z3 Compact Revealed in Leaked Photos
September 2, 2014, 9:53 AM
ASUS' ZenWatch to Arrive Wednesday, Feature Sub-$200 MSRP
September 1, 2014, 2:40 PM
Most Popular Articles
Numerous Leaks Detail 4.7" iPhone 6 Processor, RAM, Cellular and NFC Capabilities
August 29, 2014, 10:37 PM
Apple Builds Not-So-Secret Secret 3-Story Tower for iPhone 6/iWatch Unveil
August 28, 2014, 3:41 PM
Windows 9: "Upgrade Now" Button Coming for Enterprise Updates, ARM Preview in H1 2015
August 26, 2014, 8:00 PM
Buzz Grows Over Upcoming Lenovo Vibe X2's "Layered" Rim, Intel Chip
August 29, 2014, 4:59 PM
Comcast Forced Fees by Reducing Netflix to "VHS-Like Quality"
September 1, 2014, 7:18 PM
Latest Blog Posts
Space Terrorism is a Looming Threat For the United States
Apr 23, 2014, 7:47 PM
Facebook Aims to Provide Internet to "Every Person in the World" with Drones, Satellites
Apr 1, 2014, 10:20 AM
Retail Mobile Sites Experience Outages in Light of Simplexity's Bankruptcy
Mar 14, 2014, 8:48 AM
Tesla vs. BMW: Who Has the Safer EV?
Feb 1, 2014, 2:56 PM
Justice Leaks Details of Next HTC One Two Flagship Phone
Dec 5, 2013, 4:04 PM
More Blog Posts
Copyright 2014 DailyTech LLC. -
Terms, Conditions & Privacy Information