Enter Blu Ray
Having lost the video format war, Toshiba Corp is now getting into manufacturing of Blu-Ray disc products. The Japanese electronics maker had backed the high definition video format, HD DVD against the Blue Ray Disc association. The Blue ray association is backed by Japanese rivals Sony Corp and Panasonic Corp. This move is reminiscent of Sony’s strategy after its Betamax videotape standard lost to Panasonic in the 1980’ss and Sony then ended up making VHS products.
It was speculated that Toshiba may skip making Blue Ray products and instead try and develop an even more sophisticated video technology. This move could also have been because of the fact that Toshiba has registered its biggest loss ever (444 billion yen, around $3.5 billion) in the last financial year. Given the economic sluggishness Toshiba may not be keen on investing into a higher order video format standard and has taken to the Blu Ray instead.