HD DVD failure to win costs Toshiba nearly one billion dollars

Toshiba's exit from the high definition market is expected to cost the HD DVD backer a cool $1 billion as it closes down the HD DVD chapter.

AFP reports that sources within the company expect total HD DVD costs to hover around 100 billion yen which is likely to make a significant dent to its annual profit which still stand though at ... 250 billion yen.

However, this comes atop of other losses incurred in 2007 - a cool $400 million - which Toshiba then put down as an investment in the future.

The sinister fate of the HD-DVD technology leaves only the Blu-ray as the heir to the DVD throne, although there are a number of much smaller contenders like the HD-VMD (HD Versatile Multimedia Disc).

Fortunately though, the war between HD-DVD and Blu-ray did not last as long as the VHS vs Betamax which went on for a decade.

The HD-DVD demise will leave a bitter taste for those like Microsoft with its Xbox 360 who had banked huge resources and money on the format.