Toshiba throws a "Hail Mary" to save HD-DVD

[john_nemesh]

From CEPro.com 1/14/08

http://www.cepro.com

01.14.2008 — With losses piling up faster than Wade Phillips’ playoff record, Toshiba is rolling out every trick in its playbook to counter the growing momentum that the Blu-ray format is building.

Faster than you can say, “a wide-open Patrick Crayton drops a Romo pass,” Toshiba has introduced an aggressive new pricing policy that is designed to help stem the swelling wave of support Blu-ray has garnered.

The recent announcement that Warner Brothers will only back Blu-ray starting in May and the grim attendance of its booth at CES last week have many pundits proclaiming the format’s death, even though Toshiba says it is committed to HD DVD.

The cuts announced today represent price breaks in the 20 percent to 40 percent range for hardware and software, representing what is probably the company’s last chance to save a format that is already positioned in the market as a lower-cost alternative.

Without sounding like one of those “I told you so types,” I did predict that Blu-ray would prevail, but I never thought it would go down like this and I never thought that Warner would make a decision so quickly.

I have two HD DVD players at home, and once I heard the Warner news, I—like many others that attended CES—came to the conclusion that HD DVD was essentially dead because it won’t have the necessary wealth of titles to back the format.

It was this sentiment that probably contributed to the ghost town-like atmosphere that enveloped the HD DVD booth at the show.

Now that it appears that Toshiba has fired the last bullet in its HD DVD marketing arsenal, I wish that the egos that run both technology camps could have sat down and ironed things out.

In the grand scheme of things, these groups could have acted in the best interest of the industry and consumers everywhere and worked out a compromise solution that would have saved everyone a lot of money.

It also would have saved a good company like Toshiba the humiliation of losing a very public battle.

[mystiksuicide]

Originally Posted by john_nemesh

From CEPro.com 1/14/08

http://www.cepro.com

It also would have saved a good company like Toshiba the humiliation of losing a very public battle.

To late they have become the joke of the industry.

[DepTii]

Toshiba is just having a firesale, I would say.

Anyway, this is the reason why Blu-ray won, because it's backed by a company that also has experience in the movie market. The retailers, the movie companies, they all want a unified format to increase customer adoption, and Toshiba just wants to keep hanging on, even when the odds and the market is completely against them. If this turns out to be anything but a firesale, then I will have lost what little respect I had left for them.

[Manco]

A **NEW** aggressive pricing strategy??!!

We have seen this already and losses mounted continually.
I'm confused why Toshiba thinks this is a new strategy worthy of a press release. This has been their only strategy.

[sj001]

Yeah, once all of this crap clears inventory, IF it even moves, Toshiba will throw in the towel hopefully.

[dialog_gvf]

It also would have saved a good company like Toshiba the humiliation of losing a very public battle.

Ouch.

[kolasi]

an all out garage sale is not a strategy.

[Spankey]

It also would have saved a good company like Toshiba the humiliation of losing a very public battle.

Guess the HD-DVD leaning author ever thought of Sony while Toshiba was handing out bribes to studios? The fact is, Sony did sit down with Toshiba and Toshiba took MS money and walked.

It's time for Toshiba to be humiliated. The longer they hold out, the more respect they will lose from consumers.

[tron3]

They have until May before Warner drops support. They are milking it. They won't admit defeat. Even when HD DVD is gone they won't admit defeat. They will spin it to look as if THEY are saving HDM with their own motives of pure intent.

Paramount is the hold out. They have the "out clause" but they are trying to hold on to most of that 150 million. They are riding Warner's coat tail until the end of May, it would appear. At least to the end of the first quarter.

Even falling dominoes sometimes stop. It was a quick kill because it was done so soon in 2008. But HD DVD is slowly bleeding to death.

At first I was ok with inviting Tool-shiba into camp blu, but now they are jacking off the consumer. As I have said, Tool-shiba is not a studio. WE DO NOT NEED THEM, they need us!

[Sling]

Toshiba is a facken joke.How are they supposed to make money on hardware sales or any either manufactures for that matter building those junkers in the future.
Toshiba HD DVD is trash and there fanboys eat it.

[monkyman]

What's up with this guy taking shots at the Dallas Cowboys?

[radagast]

Toshiba still hopes to get Warner to change its mind and come back. If by May they do not, hd-dead's house of cards will collapse.

[d_rob1031]

Originally Posted by kolasi

an all out garage sale is not a strategy.

Sure it is, confuses the consumer into buying a cheaper product and every dollar they bring in cuts back on their losses. Though I could have named a lot better strategies than this.

[Blubaru]

Originally Posted by monkyman

What's up with this guy taking shots at the Dallas Cowboys?

Because they suck

[Jim L]

Originally Posted by john_nemesh

From CEPro.com 1/14/08

http://www.cepro.com

Now that it appears that Toshiba has fired the last bullet in its HD DVD marketing arsenal, I wish that the egos that run both technology camps could have sat down and ironed things out.

In the grand scheme of things, these groups could have acted in the best interest of the industry and consumers everywhere and worked out a compromise solution that would have saved everyone a lot of money.

It also would have saved a good company like Toshiba the humiliation of losing a very public battle.

If you research the history of this format war, Sony did actually offer to Toshiba twice to prevent this scenario. Both times Toshiba rejected their offer and went their own way.

• The first time -- before the R&D on Blu-ray began. This was during the quick ascent of DVD. Toshiba wasn't interested and didn't think Hi-Def was worth worrying about at that point.
• The second time -- right before the launch of the two formats. Sony offered to merge the technologies, patent rights and royalties. Toshiba insisted on having it entirely their way and were unwilling to compromise. (Also were prodded on by Microsoft.)

Don't pretend that this scenario was due to 2 parties who were equally at fault. I don't think it was. Even before the launch of the 2 formats, Toshiba knew that they were in the weaker position and were most likely to fail. They should have capitulated at that point.

Just think if Blu-ray would have never been developed, HD DVD would have been a 720p red-laser format, which is what Toshiba was originally promoting.

I am so glad that Sony formed the BDA and that they stuck to their guns!

There are links to a very nice summary of the HD format war history contained within this site. I can't find it at the moment. If someone else knows it, please post!

[akadkins]

I hate that Toshiba is doing this as it just messes with Joe Consumer. There are going to be more and more useless HD players out there when Blu wins and I think this will turn off potential Hi-Def customers. I just hate seeing people get screwed by what is essentially a dead format.

Also - enough with the Cowboys haters...

[Ray Cathode]

Originally Posted by john_nemesh

From CEPro.com 1/14/08

http://www.cepro.com

01.14.2008 — With losses piling up faster than Wade Phillips’ playoff record, Toshiba is rolling out every trick in its playbook to counter the growing momentum that the Blu-ray format is building.

Faster than you can say, “a wide-open Patrick Crayton drops a Romo pass,” Toshiba has introduced an aggressive new pricing policy that is designed to help stem the swelling wave of support Blu-ray has garnered.

The recent announcement that Warner Brothers will only back Blu-ray starting in May and the grim attendance of its booth at CES last week have many pundits proclaiming the format’s death, even though Toshiba says it is committed to HD DVD.

The cuts announced today represent price breaks in the 20 percent to 40 percent range for hardware and software, representing what is probably the company’s last chance to save a format that is already positioned in the market as a lower-cost alternative.

Without sounding like one of those “I told you so types,” I did predict that Blu-ray would prevail, but I never thought it would go down like this and I never thought that Warner would make a decision so quickly.

I have two HD DVD players at home, and once I heard the Warner news, I—like many others that attended CES—came to the conclusion that HD DVD was essentially dead because it won’t have the necessary wealth of titles to back the format.

It was this sentiment that probably contributed to the ghost town-like atmosphere that enveloped the HD DVD booth at the show.

Now that it appears that Toshiba has fired the last bullet in its HD DVD marketing arsenal, I wish that the egos that run both technology camps could have sat down and ironed things out.

In the grand scheme of things, these groups could have acted in the best interest of the industry and consumers everywhere and worked out a compromise solution that would have saved everyone a lot of money.

It also would have saved a good company like Toshiba the humiliation of losing a very public battle.

They are clearing out their stock and flushing out the production lines. The spin is just what is done to help the fire sale.

Ray

[Anthony P]

how is the same price they had for black Friday (and could not interest anyone) a whole new strategy?

[krispyjala]

It's a shame, really. I really liked their DVD player (and actually I still have it). Now it seems like they'll always be on the warpath against blu, pissing off the BDA at every turn just to save face, instead of just conceding defeat and bowing out gracefully. Oh well, nice knowin' ya, but I ain't buyin' another thing made by Toshiba :P

[nycomet]

http://www.usatoday.com/tech/product...s_N.htm?csp=34

Toshiba turns up heat in DVD war with big price cut

By Michelle Kessler, USA TODAY

Toshiba, unwilling to concede defeat in the next-generation-DVD battle, said Monday that it would launch an aggressive advertising campaign to promote its HD DVD players and slash prices about 50%.
Entry-level players now start at about $150, down from about $300.

The consumer electronics maker said in a statement that it would step up marketing of the players. It provided few details but said the ads would run on television, in print and online.

Toshiba made the move in response to a series of victories by a rival format, Sony-backed Blu-ray. The battle between HD DVD and Blu-ray is similar to the VHS-Betamax fight of the 1980s. Earlier this month, Hollywood giant Warner Bros. said it would release its films only on Blu-ray discs. It had previously supported both formats.

"The HD camp is doubling down," says tech analyst Roger Kay at Endpoint Technologies Associates. "Toshiba has to sell as many as they can … to populate the world with HD DVD players and maybe win back the studios."

Both HD DVD and Blu-ray can display higher-quality video than traditional DVDs. Blu-ray is arguably the more advanced technology, but HD DVD was out first and often costs less. Retailer Best Buy on Monday was offering Blu-ray players for $400 to $1,000 and HD DVD players for $150 to $1,000.

The two formats are not compatible, which means an HD DVD usually won't work in a Blu-ray player. Many movie studios have released films in both formats, an inconvenience that forces them to carry twice as much inventory.

That's why one format is expected to win out. Toshiba has support from studios including Universal Home Video, Paramount Pictures and DreamWorks Animation SKG. But Blu-ray's backers include 20th Century Fox, Walt Disney and Lionsgate Entertainment.

Adding to the confusion: Microsoft's Xbox video game system and some Toshiba laptops can play only HD DVD. Sony's PlayStation 3 video game system and some of its laptops can play only Blu-ray.

Toshiba is hoping lower prices will help it hang on. Price can be "a deal breaker for the mainstream consumer," Toshiba Vice President Yoshi Uchiyama said in a statement.

But many consumers are reluctant to buy a technology that may soon be obsolete.

"Every day the Blu-ray and HD DVD camps spend prosecuting this standards war represents a day lost in their race to remain relevant," analyst Krishna Chander at researcher iSuppli said in a recent note. "Amid the rise of exciting new digital media offerings like YouTube, iTunes and on-demand services, the window of lucrative opportunity is closing for both standards."

Toshiba also said it will continue ongoing promotions, including five HD DVD titles free with any of its HD DVD players.