News
 

Bookmark and Share

(0) 

As expected, Sony Corp. and NEC Corp. signed and agreement to form a joint venture company that will carry out optical drives businesses of both companies. The move was predictable as two companies have already signed a memorandum of understanding, but was not originally expected, as the two companies back competing next-generation DVD standards.

The joint venture between Sony Corp. and NEC Corp. will be called Sony NEC Optiarc Inc. Sony and NEC will separate their respective optical disc drive businesses on April 1, 2006 in preparation for creating this joint venture. The planned date of establishment of Sony NEC Optiarc Inc, is April 3, 2006 and it will take over the two separated businesses in creating one company, according to a statement by both firms.

The head of the new company will be Shinichi Yamamura, currently deputy president of video business group of Sony. Sony will hold a 55% stake in the new company which capital is expected to be ?490 million (about $4.2 million), while NEC’s stake will be 45%. The newly formed Sony NEC Optiarc Inc. will have approximate revenue of ?220 billion (approximately $1.89 billion) per year.

The establishment of the joint venture that will focus on the planning, design, manufacturing and marketing to manufacturers of optical disc drives (DVD and CD drives) for integration into products such as personal computers, will allow Sony and NEC to manufacture products in larger volumes at more competitive pricing than today.

The large scale manufacturing will allow both companies to shrink costs of making next-generation DVD drives, such as Blu-ray and HD DVD. Both standards are not cheap to manufacture, but Sony said large volumes of the Blu-ray disk drives will allow to make them more affordable. Nevertheless, Sony and NEC compete fiercely against each other, as the former supports Blu-ray disc drives, whereas the latter promotes HD DVD standard. Collaboration between the companies may mean that both work on the unified optical disc standard or have internal agreements over a single standard going forward.

Discussion

Comments currently: 0

Add your Comment




Related news

Latest News

Monday, July 28, 2014

12:11 pm | Intel Core i7-5960X “Haswell-E” De-Lidded: Twelve Cores and Alloy-Based Thermal Interface. Intel Core i7-5960X Uses “Haswell-EP” Die, Promises Good Overclocking Potential

Tuesday, July 22, 2014

10:40 pm | ARM Preps Second-Generation “Artemis” and “Maya” 64-Bit ARMv8-A Offerings. ARM Readies 64-Bit Cores for Non-Traditional Applications

7:38 pm | AMD Vows to Introduce 20nm Products Next Year. AMD’s 20nm APUs, GPUs and Embedded Chips to Arrive in 2015

4:08 am | Microsoft to Unify All Windows Operating Systems for Client PCs. One Windows OS will Power PCs, Tablets and Smartphones

Monday, July 21, 2014

10:32 pm | PQI Debuts Flash Drive with Lightning and USB Connectors. PQI Offers Easy Way to Boost iPhone or iPad Storage

10:08 pm | Japan Display Begins to Mass Produce IPS-NEO Displays. JDI Begins to Mass Produce Rival for AMOLED Panels

12:56 pm | Microsoft to Fire 18,000 Employees to Boost Efficiency. Microsoft to Perform Massive Job Cut Ever Following Acquisition of Nokia