Toshiba to back PS3

[Blu-Generation]

Well, it appears that Toshiba has learned their lesson. Apparantely their so-call American business partner (Microsoft) didn't do much to help them nor care for them. Eventhough Toshiba helped Microsoft with most of the hardware stuff for the 360. Such as the HD-DVD add-on and a few other parts.

Now that the war is over, Toshiba will be switching back to work with their Japanese cousin, Sony. Thanks to Microsoft influence into HD-DVD, Toshiba lost a butt load of cash. Sony now opens their arms to Toshiba and Toshiba is gonna make it all back.

http://www.dailytech.com/After+HD+DV...ticle10826.htm

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.

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.

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.

There you have it, Microsoft just lost one good partner and Sony gains another.