Bloodbath: Toshiba's Profit Plunges On HD DVD Exit
The company reports a 95 percent drop.
By Swanni
Toshiba announced in February that it was pulling the plug on the high-def disc format at the end of March, ceding victory to rival Blu-ray.
The company has said the exit could create up to $1 billion in losses. However, the damage done by HD DVD's defeat could be even more staggering, according to a Reuters report.
Toshiba today said its first quarter net profit was 1.25 billon yen ($12 million), compared to 26.17 billion yen in last year's first quarter.
And the company was not shy about revealing why.
"Our net profit sharply fell due to the end of HD DVD business," Toshiba spokeswoman Hiroko Mochida said.
The spokeswoman said that HD DVD caused $580 million in losses in the first quarter alone.
Toshiba also cited a drop in flash memory chip prices as a cause for falling profits.
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