Sony and NEC to Merge Optical Disc Drive Businesses

Razor05 · 02-27-2006, 10:27 PM

As per TeamXbox:

Sony and NEC to Merge Optical Disc Drive Businesses
By: César A. Berardini - "Cesar"
Feb. 27th, 2006 4:45 pm
Sony and NEC announced today in Tokyo that they have signed an agreement to combine their optical disc drive businesses into a single company, Sony NEC Optiarc Inc., which will start operations on April 3, 2006.

Shinichi Yamamura, who is currently the Deputy President of Sony’s Video Business Group, will be the president of the new company, which will be capitalized at 490M ¥ (4.1 million dollars) and have a total workforce of 350 employees. Sony will own the 55 percent of Optiarc while the remaining 45 percent will be owned by NEC.

The new company will combine Sony’s expertise in optical pick-up heads with NEC’s proficiency in optical LSI logic. Sony is the main backer of Blu-ray Disc technology while NEC decided last year to join the HD DVD camp, which means that the new joint venture company will manufacture and sale both technologies.

As you can see, if Blu-ray Disc fails, Sony will still make money from HD DVD by manufacturing disc drives. That’s a great back-up plan.

Will Toshiba start manufacturing Blu-ray Disc drives? Could Sony end up manufacturing Xbox 360’s external HD DVD drive? This next-generation DVD war is definitely getting hot.

Talk about covering all bases.

LordGamer · 02-27-2006, 11:01 PM

I read something about this briefly earlier.

Do you think Toshiba execs have become alcoholics as of late... I keep getting an image of them saying "Son of a b***h!" every time they check the latest tech news, in my head.

NEC was a big backer for Toshiba and their biggest (not including themselves) manufacturer. Now, Sony not only makes money either way, but better believe they will influence (aka hinder) HD-DVD player production.

If Sony is able to lower the price of Blu-ray players to match the cheaper model from Toshiba... Game Over. No ifs, ands, or buts, about it. Sony should be hearing the words "Finish Him"and have someone from their camp provide a $500 BR player, so they can perform their Fatality and get their freakin Flawless Victory already.

At this point, we all as HD fans should be pushing for Sony. Just so we can get this thing over with. The faster we have one winner, the more mainstream the format will become. More movies, more player selection, lower prices (due to internal competition), less compatibility issues, etc.

Edit... link to the article: http://news.teamxbox.com/xbox/10339/...ve-Businesses/

gpt · 02-28-2006, 12:05 AM

I believe the 55% stake for Sony as well as there being a Sony excec appointed manager....is all about Sony ....and will if anthing...hinder hd dvd even more.

Engadget is actually calling it a another lost supporter for the hd dvd group, as well as a victory for Sony.

µCOM-4 · 03-03-2006, 10:54 PM

Quote:

Originally Posted by gpt

I believe the 55% stake for Sony as well as there being a Sony excec appointed manager....is all about Sony ....and will if anthing...hinder hd dvd even more.

Engadget is actually calling it a another lost supporter for the hd dvd group, as well as a victory for Sony.

First of all this is old news being regurgitated. Second, President is from SONY and VP is from NEC. Third, having a 55% staked vs 45% stake simply means more money was invested into the Joint Venture by SONY. Everything else is just wishful thinking and conjecture by f@nboys who don't know squat about these types of strategic business moves in times of fierce price competition. Fact is SONY NEEDS NEC's help, heck SONY outsources their DVD drives to LiteOn to try and keep prices down in order to compete with NEC's inhouse production.

Finally this has NOTHING to do with NEC dumping HD DVD like some people wish hope. They are not dumping HD DVD, what are you stupid or something?

02-27-2006, 11:01 PM	#2
LordGamer Lord of Gaming Join Date: Apr 2005 Location: Pittsburgh, PA Posts: 1,788	I read something about this briefly earlier. Do you think Toshiba execs have become alcoholics as of late... I keep getting an image of them saying "Son of a b*h!" every time they check the latest tech news, in my head. NEC was a big backer for Toshiba and their biggest (not including themselves) manufacturer. Now, Sony not only makes money either way, but better believe they will influence (aka hinder) HD-DVD player production. If Sony is able to lower the price of Blu-ray players to match the cheaper model from Toshiba... Game Over. No ifs, ands, or buts, about it. Sony should be hearing the words "Finish Him"and have someone from their camp provide a $500 BR player, so they can perform their Fatality and get their freakin Flawless Victory already. At this point, we all as HD fans should be pushing for Sony. Just so we can get this thing over with. The faster we have one winner, the more mainstream the format will become. More movies, more player selection, lower prices (due to internal competition), less compatibility issues, etc. Edit... link to the article: http://news.teamxbox.com/xbox/10339/...ve-Businesses/ __________________ LordGamer Profile - George Carlin, R.I.P. 06.22.08 HD Qualifications... -- Westinghouse 47" 1080p LCD (LVM-47w1) -- Scientific Atlanta HD Receiver & DVR (8300HD), Comcast -- Sony Playstation 3 -- Microsoft Xbox 360

02-28-2006, 12:05 AM	#3
gpt High Definition is the definition of life. Join Date: Feb 2006 Posts: 390	I believe the 55% stake for Sony as well as there being a Sony excec appointed manager....is all about Sony ....and will if anthing...hinder hd dvd even more. Engadget is actually calling it a another lost supporter for the hd dvd group, as well as a victory for Sony.