Despite widespread reports that Toshiba will give up the promotion of the HD DVD standard in its competition with Blu-ray Disc (BD), Toshiba is unlikely to give up its HD DVD business operation, Taiwan optical disc drive (ODD) industry sources noted.
Digital Media Network, Toshiba's in-house company responsible for the HD DVD platform, met with domestic makers/suppliers of HD DVD components in Japan on February 18 and emphasized Toshiba's resolution to continue with its HD DVD business, the Taiwan sources explained.
If Toshiba gives up in the battle with BD, it will immediately lose royalty revenues from HD DVD patents, be forced to return already paid royalty charges as well as face risks of customers' returning purchased HD DVD products and launching mass litigation for compensation, the Taiwan source explained.
The sources added that Toshiba will continue to support Toshiba-Samsung Storage Technology (TSST), a global Top-3 ODD maker, so that the maker can offer more inexpensive HD DVD devices to compete with BD products.