Toshiba shares surge ahead of HD DVD abandonment

While owners of new HD DVD gear might be miffed at Toshiba's plans to scrap their HD DVD format, investors are stoked. Toshiba's shares are up nearly 6% in mid-day Tokyo trading on unusually high volume. A clear sign from investors that it's time for Toshiba to cut its HD DVD losses and run. Now go ahead Toshiba -- investors, consumers, retailers, and the content owners all agree that it's high time to end this format war once and for all. We're all just waiting for you to make it official.

[Thanks, Karl]

[David Vogt @ Feb 18th 2008 4:46AM]

Man, you gotta feel bad for the red camp. But I'm glad this is finally over, and overall healthy for the market.

[onlinespending @ Feb 20th 2008 1:02AM]

What about Sony? Should they cut their enormous losses and drop Bluray? Think of all the money that Sony has burnt in its attempts, albeit successful ones, to win the format war. It'll be a long time coming before they break even. Don't expect people to all of a sudden rush out an start buying Bluray players now that HD-DVD is officially dead. DVD still has a long life ahead of it.

Personally I think their ought to be a cheap red-laser based HD disc format that is more consumer friendly. I'm sick of Sony's formats that they force feed down people's throats.

[Realist2 @ Feb 18th 2008 4:49AM]

Just end the misery Toshy!! I expect Paramount and Universal announcements in order!

[Jakob @ Feb 18th 2008 4:52AM]

We thought the format war would end in 2009. It ended February 2008, and maybe 18th February 2008.
I think it's better for Toshiba to end HD-DVD, rather than Universal or Paramount.

[Jon @ Feb 18th 2008 4:56AM]

A nice short format war is better than a prolonged one. Now go ahead Toshiba, we await your BluRay player entry.

[Taylor @ Feb 18th 2008 5:22AM]

@Jon:

I wonder how long it took for Sony to release a VHS player after that format war.

[Jon @ Feb 18th 2008 5:28AM]

According to wiki, Sony began marketing their own VHS players in 1988, not long after the war 'ended'. But they continued developing on the Betamax format, which was popular in professional media up to a few years ago.

[Gremlin @ Feb 18th 2008 4:54AM]

wtf? it might be a good idea to pick up some put options

[Mr Bob @ Feb 18th 2008 5:36AM]

Might already be too late for put options now.
I wish I'd seen this coming $$$

[xploit @ Feb 18th 2008 7:03AM]

dam australia options arent big here :( oh to live in the US

[Homeboy @ Feb 18th 2008 5:30AM]

I don't understand why they have to pull the plug. Can't they let the format survive by gushing out cheap HD-DVD burners and so that people can use it for data storage???

[Sam Winter @ Feb 18th 2008 7:27AM]

The "cheap" hardware you speak of WAS NOT cheap for Toshiba. They were taking HUGE LOSSES on their HD-DVD players. Theres no way in hell they could survive selling cheap burners... the subsidized hardware lost a lot of money and was only done to push the format which would have recouped the losses in disc royalties..

[slug @ Feb 18th 2008 5:35AM]

Im so glad i didnt have enough cash on me the other week when i was goin to buy an hd-dvd player for my xbox.

@Homeboy: I agree, they should keep producing the dvds for cheap backups!

[daemonios @ Feb 18th 2008 5:36AM]

This is a sad day indeed... It's true that these format wars are not good for consumers but I was really hoping for HD-DVD to pull a last rabbit out of its hat. I admit - I don't especially like Sony, its unfinished Blu-Ray profiles, not knowing whether my player (if and when I buy one) will read future titles... It really was a genius move on Sony's side to "force" Blu-Ray on PS3 buyers. I have no doubt that if MS had done this with the XBOX, Sony would be licking its wounds after another lost format war. Oh well, maybe I'll just skip HD media and wait for HD downloads :)

[Jon @ Feb 18th 2008 7:08AM]

Sony does not own BluRay. They have a stake in the format, but they aren't the only one.

[Sam Winter @ Feb 18th 2008 7:32AM]

Profile 2.0 is just profile 1.1 plus the guarantee of a network connection. So if you have a profile 1.1 player that has ethernet/wifi, then you are good to go. And besides, even the very first players WILL PLAY ALL BLU-RAY MOVIES, its just that special features like picture-in-picture crap and online content won't work. most people including myself could care less about this crap. We just want the movie and we want it with the best quality possible.

Everyone also needs to remember that HD-DVD hardware was ONLY cheaper because they were subsidizing the players.. that is not a sustainable model for any company to actually make a profit on their products. Blu-ray players will come down in price and increase in functionality, but you can't possibly expect a $100 player anytime soon. Just the blue laser diode costs that much. If you can't afford $250 or $300, then you probably shouldn't yet be buying into the HD market.
I am not rich by any measure, but I sure appreciate quality and high technology.

[webon @ Feb 18th 2008 5:36AM]

the blood hungry mob are standing on their feet, and as they point their thumbs to their necks the uproar feels like one huge voice calling for
'iugula''iugula''iugula''iugula'

The defeated warrior, is waiting but mercy shall not come.

[cory3218 @ Feb 18th 2008 5:40AM]

now here is the real question who will announce their drop out first, Huckabee or HDDVD... Neither has a snowballs chance in hell. My bets on HDDVD. They arent trying to run for "vice format", or sell a book.
the sooner for the better for both of them I say. Man, I'm glad i didnt jump on those cheep hddvd player deals a couple months ago.

[AJ in the East Bay @ Feb 18th 2008 5:53AM]

I'm ready for a Toshiba blu-ray player!

[Togarth @ Feb 18th 2008 6:00AM]

I just feel sorry for all those who invested in a format that will now be effectively useless.
I am glad I decided to wait until the winner of the standards war was decided but as soon as it was clear the PS3 was "Blueray" it was not hard to see which way things were likely to go.

[Rich @ Feb 18th 2008 7:26AM]

I have no sympathy. Early adopters know they're going to be shafted at some point, no matter what technology they're buying into. It comes with the territory.

[Kane @ Feb 18th 2008 7:45AM]

The hardware/software that us early adopters have purchased will not suddenly stop working because the war is over. Along with the BluRay movies, we will still be watching these movies till the disks degrade, or the 4k, or UltraHD formats are released to replace them. ;)

[KcufSonyDRM @ Feb 18th 2008 7:49AM]

I am an early adopter and I don't want anyone feeling sorry for me. Quite the contrary, I am picking up HD titles for $7-10 dollars. They still deliver 1080p content to my 42" Plasma, so I am getting what I paid for and plan on picking up many titles if not all at rock bottom prices. Quite the contrary to Blu-Ray disc, which are still $24.99 to $34.99. Well' what if my players dies? Tshiba sold over a million and they are crowding Ebay as we speak for as low as $50, so I am not worried about that for the time being. I'm gonna make lemonade with my lemon!

[L.Rawlins @ Feb 18th 2008 7:12AM]

The better format won. The consumer wins.

Of course, since Microsoft backed the loser and Sony will inevitably now charge a small fortune for them to get Blu-Ray drives into or patched onto the XBox 'officially', we can now expect to see Microsoft accelerate HD downloads like the sun won't set on tomorrow.

Again, that's a win-win as far as I'm concerned. Microsoft might even be able to spur the ISP's into addressing their woeful connections as a by-product of such advancement.

Fingers crossed.

[Zeus.:God @ Feb 18th 2008 7:44AM]

I still think HD-DVD should have won. HD-DVD is SUCH a better format for both the consumer and the producer, but whatever. I guess those who bought Blu-Ray must really like spending money.

[Ashwin Narasimhan @ Feb 18th 2008 8:06AM]

Most people that bought Blu-ray players were not interested in Blu-ray, they were interested in buying a PS3.

[Jon @ Feb 18th 2008 8:15AM]

Apart from it being slightly cheaper (which were subsidised in the first place), why was HD-DVD better? It was technologically inferior.

At the end of the day the better format won. As a technology enthusiast I welcome it.

[paul-engadget @ Feb 18th 2008 8:55AM]

the good news? with HD-DVD being abandoned, there will be no money to sue people who develop hd-dvd ripping software as they will still sell some titles in that format :-)

[Dav @ Feb 18th 2008 10:09AM]

this article is behind...
http://www.reuters.com/article/companyNewsAndPR/idUSL1627196120080216

[Iridium @ Feb 18th 2008 3:15PM]

Well we lost a few hundred million dollars developing a format that went nowhere and there's no possible way we can recoup the money, but hey we'll end the format so we won't lose a few hundred million more.

This causes a 6% rise in share prices. Wow the wonders of the stock market never cease to amaze. What a load of crap.