In an interview with Reuters, Microsoft shot down claims by Sony that the companies were in discussion to bring a Blu-ray drive to the Xbox 360. Meanwhile, Toshiba is expected to take a nearly $1 billion loss for abandoning HD DVD.
Microsoft's Aaron Greenberg, group product manager for the Xbox 360, said the company was focusing on digital distribution of entertainment through Xbox Live now that no more content is being produced for HD DVD. Microsoft halted production of its HD DVD add-on and discounted remaining units last month.
Toshiba is taking a major hit due to the cancellation of HD DVD, according to the Japanese business press service Nikkei. What was expected to be a few hundred million dollars in charges will now be closer to 100 billion yen, or $1 billion, due to higher production line changes and other costs related to pulling the plug on HD DVD.