Video Business: Pioneer and Sharp have formalized their plans to jointly create Blu-ray Disc players, among other products, starting in October.
The two companies’ venture, dubbed Pioneer Digital Design and Manufacturing Corp., should help the companies improve efficiency through sharing resources.
Operations are scheduled to kick off in October, but the companies haven’t specified when the first products will reach shelves.
Blu-ray players are high on the venture’s to-do list, as well as such other optical-disc products as disc drives and recorders.
Pioneer Digital Design expects to generate 38 billion yen (approximately $400 million) between Oct. 1 and March 31, 2010.
Pioneer controls 66% of the venture, and Sharp has 34% ownership interest. PDDMC will have 450 employees, to be based within Pioneer’s Kawasaki Plant in Japan.
Toshihiko Kurihara has been tapped president of the joint Pioneer/Sharp entity. He’s currently general manager of Pioneer’s components business division of the home entertainment business group.
Earlier this year, Pioneer management said it was joining forces with Sharp in product development in order to remain competitive in the marketplace. At the same time, Pioneer said it was slimming expenses by exiting its in-house plasma display production business.