Login:
Password:
Lost Password?
Print this article  |  E-mail this article  |  Comment on this article

Microsoft denies Blu-ray drive rumors, while Toshiba eats $1 billion

By Nate Mook, BetaNews

March 13, 2008, 12:07 PM

In an interview with Reuters, Microsoft shot down claims by Sony that the companies were in discussion to bring a Blu-ray drive to the Xbox 360. Meanwhile, Toshiba is expected to take a nearly $1 billion loss for abandoning HD DVD.

Microsoft's Aaron Greenberg, group product manager for the Xbox 360, said the company was focusing on digital distribution of entertainment through Xbox Live now that no more content is being produced for HD DVD. Microsoft halted production of its HD DVD add-on and discounted remaining units last month.

Toshiba is taking a major hit due to the cancellation of HD DVD, according to the Japanese business press service Nikkei. What was expected to be a few hundred million dollars in charges will now be closer to 100 billion yen, or $1 billion, due to higher production line changes and other costs related to pulling the plug on HD DVD.

Of course, Microsoft hasn't ruled out bringing Blu-ray to its game console in the future. "As the industry moves forward, we want to support Blu-ray. Toshiba's moved on, we've moved on. We'll support Blu-ray in ways that make sense," Microsoft CEO Steve Ballmer said at MIX 08 last week.

In the meantime, however, Microsoft has more important worries: supply problems. Sony's PlayStation 3 outsold the Xbox 360 in January, a change in fortune that company executives have blamed on not being able to produce enough consoles. This trend is expected to continue through April, and Sony will surely capitalize on being ahead of the Xbox 360 in sales for consecutive months.

NPD Group is expected to release February game console sales figures later today.

Add a Comment (22 Comments)

BetaNews reserves the right to remove any comment at any time for any reason. Please keep your responses appropriate and on topic. Foul language and personal attacks will not be tolerated.

Name (required):

E-mail (required):

Enter Your Comment:

By reptile168

posted Mar 14, 2008 - 4:08 PM

once again, the format that deserves to win due to being superior (like betamax) lost. Toshiba must do like Sony and buy some movie studios and create movies that teenagers like to watch.

Score: 0

By Danno

posted Mar 14, 2008 - 11:00 AM

Funny so what Sony is thinking is that hey theres sortages of 360s that means we will continue to sell our crappy console. Then when these purchasees go and checkout the available content for games and see how they are in comparison to the 360 list and the games coming out exclusive to the 360 they too will regret purchasing the console. Ontop of that there seems to be alot more children on the POS network.

Score: 0

By deminicus

posted Mar 14, 2008 - 9:46 AM

guess its better to to take the 1 bill hit then loose 3 fighting to the last man.

Score: 0

By Program86

posted Mar 13, 2008 - 5:37 PM

1 Billion = drop in the bucket for Toshiba. They'll shrug it off in 3 quarters.

Score: 0

By KSzostek

posted Mar 13, 2008 - 7:59 PM

1 Billion is not a drop in the bucket for any company.

Score: 0

By mshulman

posted Mar 13, 2008 - 10:53 PM

I agree that 1 billion is not a drop in the bucket for any company, but some companies can handle it without worrying. Toshiba is one of them. Microsof is another.

Score: 0

By Galway

posted Mar 14, 2008 - 2:26 PM

At least it wasn't over exploding batteries.

Score: 0

By skags442

posted Mar 14, 2008 - 7:41 AM

i dont care how much $$$ any company makes, 1 billion is a big hit to any company

Score: 0

By Ian C.

posted Mar 14, 2008 - 4:54 AM

Huh, I didn't think it would be such a small number.

Score: 0

By roj

edited Mar 13, 2008 - 4:41 PM

"This trend is expected to continue through April, and Sony will surely capitalize on being ahead of the Xbox 360 in sales for consecutive months."

...after not having a product to sell for a YEAR while 360 was out.

That statement is just TOO funny.

Personally, you couldn't get me to buy a Sony product with YOUR money.

Score: 0

By Danno

posted Mar 14, 2008 - 10:57 AM

I don't buy any and right now regret even putting money into a POS3.

Score: 0

By skags442

posted Mar 14, 2008 - 7:42 AM

me too

Score: 0

By xyzcb1

posted Mar 13, 2008 - 2:54 PM

1 billion? Are you sure the estimate is right? How many players do they have to sold to make 1 billion?

Score: 0

By Tenoq

posted Mar 13, 2008 - 9:19 PM

Shutting down manufacturing is probably quite expensive. Although I reckon they could re-tool to make Blu-ray stuff. :P

Score: 0

By BrokenHALO

posted Mar 13, 2008 - 2:11 PM

HAHA... This was said by Aaron Greenberg of XBOX360:

“You can go to any given store and happen to find some consoles there, but we can tell you that from working with all of our retailers and being able to actually know our inventory by store across the country that we are still, unfortunately, experiencing shortages.”
http://www.next-gen.biz/...mp;id=9530&Itemid=2

Let me get this straight...
So maybe any given store has only 5 360's available, and MS wants each store to have 20, but they can't supply them with the other 15, so that means there ARE shortages...

But guess what, those 5 are not selling out because like Aaron said, I can go to ANY given store and buy a 360.

Score: 0

By Danno

posted Mar 13, 2008 - 2:03 PM

Well that makes sense as they had lower numbers last year as the 360 sold more consoles than Sony did so why wouldn't there be short supply. On top of that they are probably gearing up for fall releases as this will allow more sales of the console with Fable 2 and Gears of War 2 coming out consoles need to be on hand.

Score: 0

By terminalx

posted Mar 13, 2008 - 1:06 PM

Sony has supply issues as well...you can ONLY get the 40 Gb right now (which is missing a lot for taking 100 bucks out of it), no one sells the 80 gb as its out of stock, ETA 3/21

I tried buying the 60 gb and was getting a great deal but ebay blocked the guy selling them, so he refunded me my money, so I am waiting on Sony to get the 80 gb back in.

Score: 0

By KSzostek

posted Mar 13, 2008 - 8:04 PM

The 80 gig PS3 is discontinued. A new 120 Gig and it will come in white is replacing it. The only place to get an 80 Gig is to order it from Sony's store online if they still have any left.

Score: 0

By terminalx

posted Mar 13, 2008 - 8:11 PM

Per the Sony store they will be available on 3/21

Score: 0

By BrokenHALO

posted Mar 13, 2008 - 1:38 PM

The 80Gb version I believe is discontinued... for now. The UK is getting an 80gb Metal Gear and a Gran Turismo bundle for the same price. The US will probably get the same.

Score: 0

By Danno

posted Mar 13, 2008 - 2:06 PM

Whoopie,
I have a POS3 and i am soured for the last time by that company. I bought a copy of COD4 which would not work and i returned it for a 360 copy. I had 1 friend on the POS3 and was planning on playing it with him. On the lighter side i see that the 360 side turned out to be the green grass instead of the yellow grass of Sony.

As for the bloray drive
All i can say to Sony and the fanbois is HA HA!

Score: 0

By Paul Skinner

posted Mar 13, 2008 - 12:20 PM

That could have been much, much worse for Toshiba if they'd left it any longer.

Score: 0

Sep 5 - 8:44 PM ET Mozilla's Aza Raskin: The journey back to Ubiquity

Sep 5 - 7:10 PM ET Red Hat buys virtualization specialist Qumranet

Sep 5 - 7:06 PM ET Analysts: Online news viewers rising as newspaper readership falls

Sep 5 - 6:55 PM ET Where does Sarah Palin stand on technology issues?

Sep 5 - 6:51 PM ET Adobe Flash to deliver NFL games in full

Sep 5 - 4:29 PM ET Exclusive beta invitation from GameTap and BetaNews

Sep 5 - 4:09 PM ET Report: OLPC buy one, give one deal returns

Sep 5 - 3:45 PM ET No ruling yet in TiVo vs. EchoStar patent case

Sep 5 - 3:37 PM ET Google Analytics starts tracking Chrome, with intriguing results

Sep 5 - 2:14 PM ET Comcast challenges FCC's authority in sanction appeal