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Toshibas strategy: Grab China DVD market from Sony at any risk
“In the high-stakes battle with Sony over whose format will power the next generation of DVD players, Toshiba has adopted a potentially perilous strategy: encouraging low-cost Chinese competitors to crank out machines using its standard, known as HD-DVD.Courting Chinese makers has been largely taboo in Japan, where manufacturers like Sony and Panasonic have long tried to delay the transition of their technologies into cheap commodities.
Toshiba?s decision could have major ramifications in the race for the billions of dollars likely to flow from the next generation of DVD technology, which promises enhanced pictures and audio and more disc space.
Toshiba and Sony have been fighting an increasingly bitter war over which technology will become the industry standard. It is a fight that carries particular significance for Sony, which once championed the higher-quality Betamax but still lost the battle over the standard for videocassettes.
In the latest brawl, negotiations to merge their formats failed, so the two sides have been lobbying Hollywood studios, disc manufacturers, computer giants like Dell and software moguls like Microsoft, as well as retailers like Best Buy.
Sony and others developing a technology known as Blu-ray have won major victories by persuading more studios to put movies into their format. Sony also plans to include Blu-ray technology in its PlayStation 3 game consoles when they are released in the spring, effectively turning them into Blu-ray DVD players.
To thwart Sony, Toshiba has reached a bargain with Chinese manufacturers. By making its technology available to them, Toshiba hopes to get cheaper HD-DVD players in the stores months ahead of Sony, Panasonic and other Blu-ray companies
” source: 'DittoIt' 2005-11-05
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Saturday, November 05, 2005
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