So you want to know how business works?

[stratman]

We all have had enough of the HD DVD/BD bombardment for the last week, you've got fanboys on both sides, Sony haters galore, Blu-ray apologists and fence sitters that don't care either way. This story that bears a little A/V significance, is still important for those of us that need to learn a bit about the corporate world, specifically the Japanese business culture. Everyone was certain the Evil Sony was going to try and destroy poor underdog Toshiba, that mean Sony, shame on you picking on Toshiba like that, well read the story and you'll notice big corporate wars are not what they seem, posturing and trash talking for the public while coddling behind closed doors.





Toshiba-Sony JV to make advanced chips
Thursday, February 21, 2008 at 05:00 EST

TOKYO — Toshiba Corp and Sony Corp said Wednesday they will set up a joint venture to produce from April high-performance semiconductors, including products for Sony's PlayStation video game consoles. The joint venture, whose name will be fixed at a later date, will be capitalized at 100 million yen, of which Toshiba will put up 60%, while Sony and its game arm Sony Computer Entertainment Inc will each provide 20%, the companies said.

In line with an agreement announced in October last year, Toshiba is set to acquire by March 31 the 300-millimeter wafer fabrication facilities at the Sony group's Nagasaki Technology Center in Isahaya, Nagasaki Prefecture, for around 90 billion yen, the firms said.

Toshiba will then loan the facilities to the joint venture.

The joint venture, to be located in the Nagasaki center, will manufacture the Cell microprocessor and the RSX graphics processing chip for the PlayStation 3 game console as well as Toshiba's leading-edge system-on-chip products for use in digital consumer goods.





Don't feel sorry for Toshiba, they're in bed with Sony and will be for a long time. If you look closely, you'll find many unlikely alliances that most folks would deem impossible.


Remember this was after a couple of days of Sony rubbing the nose of the HD DVD camp all over the dirt!

 

[rnatalli]

No surprise to me. I used to work in Investment Banking and I have plenty of stories to tell.

 

[MUDSHARK]

Just what do you think ULA (united launch alliance is?) Thats right Boeing and Lockheed-Martin. Beggin' your pardon The Boeing company. As a medium sized aerospace contractor I wanna tell you can't live with em can't live without em.

 

[stratman]

I've been hearing persistent rumours that Boeing and Airbus might merge, you have the lowdown?

 

[stratman]

No surprise to me. I used to work in Investment Banking and I have plenty of stories to tell.

Less for the "older" guys, I put this up so some of the younger guys (and some fanboys), that aren't' business savvy might get a gander at what goes on in corporate circles, what you see and read usually isn't what it seems.

 

[Seth=L]

This reminds me of Philips and Sony in the development of CDs. Philips and Sony had competing technologies when those where coming out as well. Philips wanted to use PCM and Sony wanted to use DSD. Philips won out and set the standard with PCM. Sony would later use a refined version of DSD for their SACD format.

This kind of thing happens all the time, some are less public than others.

 

[stratman]

This reminds me of Philips and Sony in the development of CDs. Philips and Sony had competing technologies when those where coming out as well. Philips wanted to use PCM and Sony wanted to use DSD. Philips won out and set the standard with PCM. Sony would later use a refined version of DSD for their SACD format.

This kind of thing happens all the time, some are less public than others.

Yup, S/PDIF = Sony/Philips Digital Interface Format.

 

[stratman]

The joint venture, to be located in the Nagasaki center, will manufacture the Cell microprocessor and the RSX graphics processing chip for the PlayStation 3 game console as well as Toshiba's leading-edge system-on-chip products for use in digital consumer goods.


Can this be part of Toshiba's plan to build a Blu-ray player?

 

[MUDSHARK]

Have not heard anything regarding Boeing. However we work mainly with the cape divisions and Huntsville other than ULA and USA.

 

[Seth=L]

Yup, S/PDIF = Sony/Philips Digital Interface Format.

Every company thinks they know best, they tend to go the way of natural selection.

 

[aberkowitz]

In the end, it always comes down to what will make you the most money... nothing wrong with that at all. Only way a company can survive is to adapt and change as the markets change.

 

[Nomo]

I never looked at the HD war as a David and Goliath battle. Granted Sony is the big kid on the block, but I've never considered Toshiba to be the pathetic underdog.

 

[stratman]

I never looked at the HD war as a David and Goliath battle. Granted Sony is the big kid on the block, but I've never considered Toshiba to be the pathetic underdog.

Well not pathetic. But it was a big group of CE manufacturers(and the world's largest, Matsushita, nee Panny) versus one manufacturer. Notice I didn't put the studios in. So if you go by numbers, I'd say it was one against many.