HD DVD killed by Cell processor (?)

[Asmodeus]

I don't want to flame some great war, but I was wondering why Toshiba dropped so easily on HD DVD. What was main Sonys interest in Toshiba? Cell processor.
Sony withdraw from Cell coalition with IBM and Toshiba, but they main BR product, PS3, is build on Cell processor, so they need flawless supply of it. I googled a bit for some connection between HD DVD and Cell and I found answers. Alot of them.

From Amazon.com

Sony gives Toshiba something in return for its troubles -- Japanese Cell chip plants for $835M

A new twist has emerged with the death of HD DVD. After Warner, Best Buy, Walmart and Netflix jumped on the Blu bandwagon, the fate of HD DVD was already sealed.

Despite the grim news, the principle HD DVD developer, Toshiba Corporation, refused to initially comment on its plans for its HD DVD. However, as many analysts predicted, Toshiba came out last week and officially surrendered to Blu-ray.

Many saw Toshiba's willingness to give up on HD DVD as a logical business decision and perhaps an admission of Blu-ray's superiority. However, there might be a little more to the story. Reuters reports that on Wednesday Toshiba and Sony Corporation, one of Blu-ray's principle developers, agreed to a major business deal, reached just after Toshiba made its final HD DVD decision.

Sony agreed to sell it microchip processing facilities in western Japan for approximately $835M USD. These facilities currently produce Cell processors and RSX graphic chips. Toshiba will enter the joint venture with Sony on April 1, 2008.

Toshiba, IBM and Sony were the principle developers of the Cell microprocessor, but Toshiba previously showed little interest in using the chip for any of its own projects. Sony touts the Cell broadband engine in its Playstation 3 consoles; IBM uses the Cell processor in high performance computing clusters. Toshiba has vowed to now use the Cell in its upcoming products.

While Toshiba and Sony entered into talks back in October 2007 and reached a tentative agreement to sell the cell facilities, the two companies continued to haggle about the price. Sony's concession of what is considered a favorable price for Toshiba will likely strike many following Toshiba's drop as HD DVD as more than a coincidence, and perhaps a sign of an informal agreement.

The other interesting aspect of the move is that it indicates a clear shift by Toshiba to back the PS3. The PS3, which last month outsold Microsoft's Xbox 360, previously had few ties to the company; while Microsoft's number one ally in hardware manufacturing has always been Toshiba. Toshiba manufacturers several components for the Xbox 360, including the HD DVD add-on, and the Microsoft Zune MP3 players.

Toshiba's flip-flop may have been in the cards for a while. Microsoft showed little remose as HD DVD took second place to Blu-ray; a move Toshiba must have recognized from its American ally. Now the solidified PS3 venture between Sony and Toshiba indicates that Toshiba now has switched to backing the PS3 almost exclusively, another victory for Sony.

A complete coincidence is that the current CEO of Toshiba is Atsutoshi Nishida.

Mr. Nishida, who studied German political thought and joined Toshiba through an affiliate in Iran, is a different kind of manager for the tech giant, which has historically chosen engineers.

Full inteview on The Wall Street Jurnal

[Doobie]

Originally Posted by Asmodeus

I don't want to flame some great war,

Then you don't want to say anything of value.

but I was wondering why Toshiba dropped so easily on HD DVD. What was main Sonys interest in Toshiba? Cell processor.

HD DVD was worth a lot more to Toshiba than paying nearly a billion dollars to get in on the cell game.

[Sharktooth]

i dont think so...

[Ajax_Undone]

LOL what's done is done HD DvD ate mud Sony
owns the bigger chunk of the WTO and all conspiacies a side
it was planned from the get go.

They needed an apposing thumb so they wouldn't get
sued... (ie illegal monopolyHD died just as soon as it was release...