HD DVD statement expected within days

Toshiba shares rise as company due to cut losses

18 February 2008 8:37 GMT / By Amy-Mae Elliott

Following the news of Wal-Mart, America's biggest retailer's decision to go Blu-ray only from June, it seems the format war is days away from over.

Sources in Japan are reporting that Toshiba, HD DVD's inventor and main backer are to cut their billion dollar losses on the next-gen format and stop the manufacture of equipment.

Toshiba said on Monday that no decisions had been made on HD DVD with an official, brief statement:

"The media reported that Toshiba will discontinue its HD DVD business. Toshiba has not made any announcement concerning this. Although Toshiba is currently assessing its business strategies, no decision has been made at this moment."

But a company source told Reuters on Saturday that the company was in the final stage of planning its exit.

Toshiba's shares jumped over 6% as analysts praised its move to realise the battle has been lost, while Sony, one of the main players in the Blu-ray camp, saw its shares rise 2.1%.