Failed HD DVD Format Could Cost Toshiba A Staggering $1 Billion in Losses

According to reports surfacing today the total cost to Toshiba resulting
from the failure of its HD DVD format could hit Toshiba in the pocket to
the tune of around ยฅ100 Billion (approximately $986 / pound sterling486
/ 633 million).

The reports, originating from the Nikkei business daily, have yet to be
substantiated officially by Toshiba, with a spokesperson merely stating
'We did not announce this, and therefore we cannot comment.' (We'll take
it that the matter is somewhat of a sore point).

The envisaged losses stem, in large part, from the changes now required
to production lines specifically set up to produce HD DVD hardware
which, if these reports are to be believed, will account for up to fifty
percent of the related losses though, regardless of this significant
hit, Toshiba still expects overall profits in the region of ยฅ290
billion for the year ending March - though Toshiba also expects to be
impacted by the falling price of microchips and LCD displays on which
the company is heavily reliant.

The news concerning the impact of HD DVD's demise saw Toshiba's shares
drop by a not insignificant 2.3% though, at the time of writing,
Toshiba's share price is making a recovery.

[via]