Toshiba Corp. said that no decision has been made but acknowledged it had started a review of its HD DVD business strategy. The company statement was issued after weekend reports from Japanese media, including Kyodo News, that Toshiba is studying a possible withdrawal from HD DVD.
A company official, speaking on condition of anonymity as she is not authorized to speak on the matter, said a board meeting could be held as soon as Tuesday, where a decision is likely.
HD DVD has been competing against Blu-ray disc technology, backed by Sony Corp., Matsushita Electric Industrial Co., which makes Panasonic brand products, five major Hollywood movie studios and others.
Despite the reports, Toshiba's stock soared 6.4 percent in morning trading. The gain underlines how the market is welcoming the relatively quick decision as lessening the potential damage in losses in the HD DVD operations, despite the blow to Toshiba's prestige.
