Toshiba To Post $977 million In HD DVD Losses In FY07

[Sir Terrence]

Originally Posted by d_rob1031

They actually were probably making a profit on those players, in the early onset anyway and even with their newer models (before the price cuts). But by the time you figure in marketing costs, R&D costs, paying off movie studio costs, etc., they could have been making money off of the players but they were spending more than they were making. On top of that they just didn't move many units. Period. Profit margin only goes so far on a product, gotta move units on top of that.

You really cannot isolate costs this way. You have to figure in marketing costs, R&D, and paying off movie studios as part of the cost of each player. Even if you parce it out in the way you are doing, it still ends up being a net loss on each player. The bottom line is Toshiba was subsidizing the market, and that is all there is to it.

[Teazle]

Query: how much did Toshiba throw away on R&D for TL51 alone? In so many ways TL51 epitomizes the stupidity of the format war -- a redundant technology developed solely to make an on-paper talking point for HD DVD. I would like to know what it was worth to them.

[d_rob1031]

Originally Posted by Sir Terrence

You really cannot isolate costs this way. You have to figure in marketing costs, R&D, and paying off movie studios as part of the cost of each player. Even if you parce it out in the way you are doing, it still ends up being a net loss on each player. The bottom line is Toshiba was subsidizing the market, and that is all there is to it.

Sure you can, accountants do it all the time (I'm no accountant, thank God, but I've had 4 courses in it. I sincerely hate it). But I see what you are saying, though. Theres always more than one way to look at the numbers.

[Maximus]

Originally Posted by dialog_gvf

Toshiba Corp.

100 billion yen / 3.2B outstanding shares = 31.25 yen per share

Stock price: 717 yen
Dividend: 12.5 yen per share

Yeah, the shareholders are happy, happy, joy, joy over this.

Gary

That's not fair, Japanese companies do not pay out big dividends like western companies. Shareholders in Japan are usually more concerned with long-term growth and prefer profits to be re-invested or set aside for bad times than for it to go in their pockets. Also all of this loss wasn't made in a single year, I would say it is the accumulation of costs since they announced AOD in 2004.

Still a big number though.

[HeavyHitter]

The madness.

Bring on 960p SUC!

[wallendo]

Interesting, apparently they were only planning on losing only $400 million on HD-DVD this year (before the Warner announcement).

[Kirsty_Mc]

Oh what a shame

[unreal1080p]

Originally Posted by Kirsty_Mc

Oh what a shame

For those who missed it --> https://forum.blu-ray.com/showpost.p...3&postcount=10

[dialog_gvf]

Originally Posted by Maxpower1987

That's not fair, Japanese companies do not pay out big dividends like western companies. Shareholders in Japan are usually more concerned with long-term growth and prefer profits to be re-invested or set aside for bad times than for it to go in their pockets. Also all of this loss wasn't made in a single year, I would say it is the accumulation of costs since they announced AOD in 2004.

Still a big number though.

I didn't mean to imply the shareholders would have expected the money. But, it represents 31.25 yen per share in money that was p!ssed away rather than being properly invested in the future of the company, does it not?

Let me put the loss in these terms:

HD DVD players sold: 750,000
Free HD DVD players that could have been given away at $400 cost each: 2.5 million

Gary

[X400]

wow... well at least they went out with a bang

[Anthony P]

They actually were probably making a profit on those players, in the early onset anyway and even with their newer models (before the price cuts). But by the time you figure in marketing costs, R&D costs, paying off movie studio costs, etc., they could have been making money off of the players but they were spending more than they were making. On top of that they just didn't move many units. Period. Profit margin only goes so far on a product, gotta move units on top of that.

no, Toshiba lost money on every player they sold

[WickyWoo]

no, Toshiba lost money on every player they sold

About the lowest it ever got was $100 a player, down from $3-350 when they launched

[unreal1080p]

And yet another article (dated today March 17th 2008) about this:

http://www.dailytech.com/Toshiba+to+...ticle11069.htm

The gift that keeps on giving

[dialog_gvf]

Originally Posted by unreal1080p

http://www.dailytech.com/Toshiba+to+...ticle11069.htm

It's sad that a great company like Toshiba has been reduced to peddling repackaged 10 year-old tech as the next consumer electronic coming.

LCOS gone
SED gone
HD DVD gone

[unreal1080p]

Originally Posted by dialog_gvf

It's sad that a great company like Toshiba has been reduced to peddling repackaged 10 year-old tech as the next consumer electronic coming.

LCOS gone
SED gone
HD DVD gone

I'm ONLY sad about SED...

All the other technology whas/is junk and belongs in the junk closet
--> http://www.youtube.com/watch?v=kH7S_Nwb8fU

[MatrixS2000]

Originally Posted by dialog_gvf

It's sad that a great company like Toshiba has been reduced to peddling repackaged 10 year-old tech as the next consumer electronic coming.

LCOS gone
SED gone
HD DVD gone

Yes, but their future is going to SUC....

[JTK]

http://www.dailytech.com/article.aspx?newsid=11069

Hideous. No positive spin can come out of something like this.

[radagast]

As Monk would say, "Can't they throw away $23 million more to make it an even number?"

[unreal1080p]

Originally Posted by JTK

http://www.dailytech.com/article.aspx?newsid=11069

Hideous. No positive spin can come out of something like this.

Yep... The ONLY thing that can come out of this is a new Mastercard commercial :


HDTV for Dummies = 14.95$


Business Success for Dummies = 14.95$



Logic for Dummies = 13.59$


TOTAL = 43.49$



Seeing Toshiba spend 1 billion dollars to learn the same lesson

=

PRICELESS!



For everything else, there's Mastercard

[tqlla]

Originally Posted by Teazle

Query: how much did Toshiba throw away on R&D for TL51 alone? In so many ways TL51 epitomizes the stupidity of the format war -- a redundant technology developed solely to make an on-paper talking point for HD DVD. I would like to know what it was worth to them.

Didnt they just take a blank CD and write TL51 on it with a sharpie? If thats tru, it probably cost them 10 cents. =)