Investors: We Come Not to Bury HD DVD, but to Celebrate Over Its Lifeless Body
The markets are having their say about Toshiba’s rumored withdrawal from the next generation DVD format war and their message is clear: Get on with it, already.
Shares in Toshiba (6502.TO) moved sharply higher in early trading today as investors welcomed reports that the HD DVD champion is itself planning on abandoning the format and throwing its support behind Blu-ray. “We have entered the final stage of planning to make our exit from the next generation DVD business,” a nameless source inside Toshiba told Reuters over the weekend.
Publicly, however, Toshiba claims it’s still considering its options. “Toshiba has not made any announcement or decision,” a company representative told the BBC. “We are currently assessing our business strategies, but nothing has been decided at the moment.”
Well, perhaps not at this particular moment, but certainly at one in the near future. As Koichi Ogawa, a chief portfolio manager at Daiwa SB Investments, notes, the consumer electronic industry has been echoing with HD DVD’s death rattles for quite a while. It’s time to put the old boy out of his misery: “It doesn’t make sense for Toshiba to continue putting effort into this,” said Ogawa, “It needs to cut its losses and focus its resources on promising businesses.”