The firm will cease shipments of HD-DVD players and recorders into retail by the end of March. It also plans to end production of HD-DVD disk drives for such applications as PCs and games consoles in the same timeframe.
"We carefully assessed the long-term impact of continuing the so-called 'next-generation format war' and concluded that a swift decision will best help the market develop," said President and CEO of Toshiba Atsutoshi Nishida.
"While we are disappointed for the company and more importantly, for the consumer, the real mass market opportunity for high definition content remains untapped and Toshiba is both able and determined to use our talent, technology and intellectual property to make digital convergence a reality."
Toshiba will continue to provide full product support and after-sales service for all owners of Toshiba HD DVD products.