Joint Venture Between Sony and NEC

[Ian]

IMO.. it's a good move for both companies. Both can stay competitive without having to sell out to Taiwanese manufacturers.

http://news.yahoo.com/s/nm/20051117/tc_nm/sony_nec_dc_1

I'm guessing we'll be seeing NEC based Sony drives this spring.

[Ian]

Here's NEC's official announcement:

http://www.nec.co.jp/press/en/0511/1703.html

Sony's:

http://www.sony.co.jp/SonyInfo/News/Pre ... index.html

[Bhairav]

Woo! What about Lite-On then?

[Ian]

Lite-On and NEC or Lite-On and Sony?

While I have never heard anything official, I think Lite-On and Sony parted ways earlier this year. The Lite-On and NEC thing was just a rumor as far as I know.

[dodecahedron]

so what, no SOHW, SOHR, SOHD, SOHC drives from Lite-On anymore ?

[dodecahedron]

wasn't there a news article or rumor a while back (month or so?) about NEC stopping the manufacture of DVD drives? or stopping design of new drives (can't recall exactly what it was).

EDIT:
here's the link.
http://www.cdrlabs.com/phpBB/viewtopic.php?t=20244

[Ian]

wasn't there a news article or rumor a while back (month or so?) about NEC stopping the manufacture of DVD drives? or stopping design of new drives (can't recall exactly what it was).

Yeah, I remember that. I think DigiTimes was smoking something good that day. Maybe they got wind of this joint venture and just figured they'd go with Lite-On? Dunno..

I'm not really sure about the Lite-On naming thing. I've never really heard a good reason for the recent naming switch. It's also odd that it happened at the same time that Sony started using BenQ drives....

[Bhairav]

Lite-On and NEC or Lite-On and Sony?

While I have never heard anything official, I think Lite-On and Sony parted ways earlier this year. The Lite-On and NEC thing was just a rumor as far as I know.

I meant L-O and Sony. Thanks for the scuttlebutt anyways

[Ian]

It looks like Lite-On is a little concerned about this:

http://www.digitimes.com/systems/a20051118A1001.html

Taiwan’s largest maker of optical disc drives (ODDs) Lite-On IT, in response to the formation of a new joint venture between Sony and NEC to design, produce and market ODDs, said that the company will be carefully monitoring the situation, according to general manager Michael Gong for the company’s Optical Disc Drive Business.

Sony and NEC have concluded a memorandum of understanding to establish a joint venture in which Sony and NEC will hold a respective 55% and 45% stake, with operations to begin April 1, 2006, according to a joint press release by the two companies on November 17.

Lite-On IT is expected to be seriously concerned about the new joint venture because Lite-On IT is currently the main ODM/OEM maker of ODDs for Sony, with Sony’s orders worth more than NT$10 billion (US$298 million) a year, accounting for 20-25% of the company’s total revenues, according to local ODD industry sources.

I'm guessing those OEM drives are going to Sony's computers, right? Unless those BenQ based drives are being produced by Lite-On's factories.

[jberry]

yah....I can just see Sony putting in the rootkit nonsense in their drives

[dodecahedron]

I'm not really sure about the Lite-On naming thing. I've never really heard a good reason for the recent naming switch.

what naming switch exactly are you referring to?
DVD burners now named SHW-xxxx instead of SOHW-xxxx ?
they're still using SOHC, SOHD and SOHR for combo, DVD-ROM and CDRW drives.

EDIT:
i must have forgotten all about this.
discussed here: http://www.cdrlabs.com/phpBB/viewtopic.php?t=20269

[Ian]

DVD burners now named SHW-xxxx instead of SOHW-xxxx ?
they're still using SOHC, SOHD and SOHR for combo, DVD-ROM and CDRW drives.

Those aren't new drives though. I believe they were all released before the SHW-xxxx DVD writers.

Keep in mind.. its just a theory.

[dodecahedron]

yeah,i was thinking the same thing.

but i still don't see a connection between the change SOHW -> SHW and any change in the business relationship between Lite-On and Sony.
as i recall, the S in SOHW supposedly stands for Sony.

[TCAS]

The bad news about this is, that the competition of DVD drive manufacturer is being reduced and ultimately the consumers would end-up paying more for the CD/DVD drives.

[Ian]

I'm not that concerned about the price. They're dirt cheap as it is. I'm more concerned with the number of available designs being reduced. I'd really hate to see the Japanese manufacturers like NEC, Pioneer and Plextor being put out of business by companies putting out cheaper but lower quality drives.

[TCAS]

You are right on this, but remember no Japanese manufacturer of consumer goods can effort to produce any good in Japan any more and pay $80 per hour labor+ bebifits and still be able to compete in the world market this is law of nature. Just look in majority of Japanese electronics of home appliances, they all being made either in China or close by Southeast Asia, even South Korean can't effort to produce goods there any more. As long as majority of us have 3 or more CD/DVD burner in our computers or 3 or more TVs, cars, stereos,...... and demanding cheap price for them that is what happen. Even the most crucial industry (Aerospace) the last one we had here is being outsourced.

[Ian]

It looks like Lite-On is going to produce drives for this new joint venture:

http://www.digitimes.com/systems/a20051125A1001.html

Lite-On IT has reportedly obtained OEM orders for half-height (H/H) DVD burners from NEC through its strategic-alliance partner Sony, according to industry sources. If true, Lite-On IT stands a good chance of replacing Hitachi-LG Data Storage (HLDS) to become the largest global maker of H/H DVD burners next year. Lite-On IT, however, declined to comment on the report.

The sources pointed out that shipments for the OEM order are to begin in April 2006. Viewing that OEM prices for H/H 16x DVD burners have dropped to as low as US$35-40, NEC is under increasing pressure from competition and must turn to OEM production sooner or later, the sources indicated.

Taiwan Securities Investment Advisory, quoting a forecast by Japan-based Techno Systems Research (TSR), indicated that HLDS will ship 19.72 million H/H DVD burners this year, followed by NEC with 10.87 million, and Lite-On IT with 10.45 million units. If NEC releases all of its OEM orders to Lite-On IT, the latter would have a larger shipment volume than HLDS.

[dodecahedron]

LOL... LiteOn doesn't give up, huh ?

so now the drives will be called SNOW - Sony NEC Optical Writer ?

[dolphinius_rex]

LOL... LiteOn doesn't give up, huh ?

so now the drives will be called SNOW - Sony NEC Optical Writer ?

Nope, it's something much MUCH worse. I would like to introduce you all to the new line, of LiteON Optical Writers for NEC and Sony, drives. I believe the first drive released for this new line will be the LiteON OWNS-J00s.

But they're not bitter

[Ian]

The joint venture will be completed in April. The new company will be called Sony NEC Optiarc Inc. (who comes up with these names?)

http://www.sony.net/SonyInfo/News/Press ... index.html

Sony Corporation (“Sony”) and NEC Corporation (“NEC”) announce today that they have signed a definitive agreement to establish a joint venture company, Sony NEC Optiarc Inc., in carrying out optical disc drive business. Shinichi Yamamura, currently Deputy President of Video Business Group of Sony, will serve as the president of the new company. 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.

I'm curious to know what next-gen DVD format they'll support. Sony is a big backer of Blu-ray but NEC supports HD DVD. With Sony being the majority stock holder, I could see them sticking with Blu-ray and ditching HD DVD.

[dolphinius_rex]

I'm curious to know what next-gen DVD format they'll support. Sony is a big backer of Blu-ray but NEC supports HD DVD. With Sony being the majority stock holder, I could see them sticking with Blu-ray and ditching HD DVD.

Hehehe, talk about making changes from within!

If you can't beat the, merge... and then do what you want

[Ian]

It sounds like they're doing both:

http://www.computerworld.com/hardwareto ... source=x10

The company will handle the optical drive businesses of both companies including manufacturing, marketing and sales of drives for the Sony-backed Blu-ray Disc technology and NEC-backed HD-DVD technology. It will also handle development and engineering of optical drives, the companies said.