A new twist in the HD-DVD death has just appeared; Sony seems to have paid off Toshiba in a deal that is rumored to be about $835M, Moving production of the PS3s Cell Processor to Toshiba, making them one of the biggest players in the Blu-Ray movement. Not only do the plants make the Cell Processor, but also the graphics chips for Sony’s PS3 (which outsold Microsoft’s Xbox360 last month [link]).

This seems to be quite an underhand way to get rid of HD-DVD but in reality it will probably be best for the end user, unless they were stupid enough to buy an HD-DVD (now rebranded to HDMI upscaling DVD player with HD-DVD) player.

Filed under: Industry News