+Audioboxer Subscriber² Posted February 24, 2008 Subscriber² Share Posted February 24, 2008 Sony gives Toshiba something in return for its troubles -- Japanese Cell chip plants for $835MA 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. Source: http://www.dailytech.com/article.aspx?newsid=10826 Toshiba sure like spending money :p At least backing Sony/PS3 will work out better for them. Link to comment Share on other sites More sharing options...
Danrarbc Posted February 24, 2008 Share Posted February 24, 2008 Hasn't this deal to buy these facilities been in the works for quite some time? I mean I thought it was old news. This has nothing to do with backing PS3, they participated in the development of the CELL. It benefits them quite a bit to own the lines too if they do end up using the chips. As for not using it so far, what does Toshiba make that could use it at the moment? Link to comment Share on other sites More sharing options...
PL_ Veteran Posted February 24, 2008 Veteran Share Posted February 24, 2008 This has nothing to do with backing PS3, they participated in the development of the CELL. It benefits them quite a bit to own the lines too if they do end up using the chips. As for not using it so far, what does Toshiba make that could use it at the moment? Screens, apparently. I think it's a waste myself. Link to comment Share on other sites More sharing options...
simmorya Posted February 24, 2008 Share Posted February 24, 2008 Hasn't this deal to buy these facilities been in the works for quite some time? I mean I thought it was old news.This has nothing to do with backing PS3, they participated in the development of the CELL. It benefits them quite a bit to own the lines too if they do end up using the chips. As for not using it so far, what does Toshiba make that could use it at the moment? The Cell processor could be included in just about anything. HDTV's, Blu-ray players, Digital Camera's etc etc. Toshiba make heaps of crap that could benifit with Cell. I cant understand why they didnt use this technology to begin with considering they helped make it. Did Toshiba loose faith in the Cell chip just becasue of poor PS3 sales at launch? It seems pretty stupid that they developed a powerfull chip and were reluctant to use it till now. Link to comment Share on other sites More sharing options...
soniqstylz Posted February 24, 2008 Share Posted February 24, 2008 Toshiba's been using it with motion-capture hardware. http://www.gamespot.com/news/6159215.html?q=motioncapture and a television http://www.n4g.com/industrynews/News-112113.aspx Link to comment Share on other sites More sharing options...
blackhorse Posted February 24, 2008 Share Posted February 24, 2008 Toshiba had a big role in developmeent of Cell and Sony are now cutting costs by selling off their manufacturing facilities. I remember reading about this more than 6 months back. Sony is not some benevolent philantrophy but a company looking to make money. This is not something in return for troubles, its just business sense. Link to comment Share on other sites More sharing options...
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