Japan (Tokyo) – A Japanese newspaper has put some number on the failure of HD DVD and the cost of its shutdown for its main promoter, Toshiba. According to Nikkei, Toshiba expects a 50 billion Yen or almost $500 million loss from its HD DVD operations, which however could hit almost twice that because of charges resulting from the shutdown of production lines.
This number, by the way, only reflects the cost of the past 12 months and does include any other costs incurred since 2002, when the development of the format began. As of now, these numbers are based on information from industry sources and we won’t find out how much the real loss was until Toshiba will report its financials in April.
Toshiba’s guidance for the full year was a profit of 290 billion Yen, while analysts are now expecting the company to end up at about 250 billion Yen. It is unclear which portion of the HD DVD shutdown charges will be included in the firm’s fiscal year, which ends on March 31.
Toshiba pulled the plug on HD DVD on February 19, stating it was impossible to win the format war after Warner announced its switch to Blu-ray in early January. Despite the ongoing $300 million “The look and sound of perfect” campaign, the HD DVD camp lost support from major movie studios, retailers and rental outlets within six weeks.