How Much Does A Failed Format War Cost?

The Blu-ray vs. HD DVD format war is over, but the fallout and consequences aren’t. And the big loser in the war, Toshiba, is facing the music for their failed campaign. Toshiba started the war in an attempt to increase their consumer electronics market share, but their attempted grab for lebensraum backfired and they’ve been left holding the bill. How large of a bill? According to Japan’s Nikkei business daily Toshiba will have to book a loss of $986 million relating to HD DVD, bringing their full-year profit down to roughly $2.44 billion. That’s certainly not a crippling blow for a company the size of Toshiba, but it certainly isn’t exactly pleasant. And it just goes to show the size of the risk, and the stakes, that where at the core of the format war in the first place.


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MegaZone is the Editor of Gizmo Lovers and the chief contributor. He's been online since 1989 and active in several generations of 'social media' - mailing lists, USENet groups, web forums, and since 2003, blogging.    MegaZone has a presence on several social platforms: Google+ / Facebook / Twitter / LinkedIn / LiveJournal / Web.    You can also follow Gizmo Lovers on other sites: Blog / Google+ / Facebook / Twitter.
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