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On Feb 24th 2008 Toshiba Announced That It Would No

Question 5

Multiple Choice

On Feb 24th 2008 Toshiba announced that it would no longer produce HD DVD and conceded that Sony Blue-Ray has won the competition for dominance in the high definition DVD market. What can we conclude from this announcement?


A) The market has tipped in favor of Sony Blu-Ray and Toshiba understood that continuing to compete would be pointless
B) The high definition DVD market was not a tippy market and the strong network effects that Toshiba could leverage had dissipated
C) Until the network is saturated there is an opportunity to discover profitable niches and maintain financial viability
D) Information economics are strong in the high definition DVD market and Sony Blu-Ray was the first one to achieve critical mass of information reusability.
E) Impossible to determine from the information given.

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