Toshiba Corp says they have given up on the HD-DVD business. They are throwing in the towel. Surrendering. Calling it quits.

We lost. They won. Won't hear any more from us.

We're going to make money on developing and selling nuclear power instead.

Toshiba Corp lost its battle over the next-generation DVD format with Sony Corp and its Blu-ray camp.

Why?

1. Sales in Japan and the U.S. markets are too sluggish.

2. Sales in Europe are okay, but they are not enough.

3. Paramount Pictures and other studios as well as support from Microsoft Corp is not enough.

4. Other U.S. - Warner Bros, etc, and retail giants Best Buy and Wal-Mart have opted to mainly handle Blu-ray products. Wal-Mart controls about 40% of the U.S. DVD market.

5. Slashed prices of its HD-DVD players in January didn't help. Maybe the company knew then it was pulling out and just wanted to dump as much of their inventory as they could.

6. The huge amount of money needed to reverse the trend of declining sales is not worth it says Toshiba.

Toshiba has lost. 

source