Thread: Toshiba's net profit plunges

It's a little sticky if you try and compare HDDVD losses to PS3 losses, as Toshiba is taking charges anticipating further costs of ending the HDDVD business, so that this doesn't stretch over multiple quarters. This is similar to what Microsoft did with the 360 defective problem, they took a $1B charge in 1 quarter for anticipated future losses as a result of the extension of the warranty.

They build a 500 million dollar factory and write off $12.5 million a year for 40 years, so it hides in the P & L. But when they close a factory they have to write off the amount they have not depreciated.

All the expenses like R&D, factories, etc. are depreciated over many years. In fact the government makes them do it.