The decision was relatively quick, coming just several years after the competing technologies arrived.
In the last video format battle, between VHS, backed by Matsushita, and Sony's Betamax in the 1980s, it took a decade before Sony stopped making new Betamax products.
Nishida, who stressed HD DVD was a good technology, tried to assure the estimated 1 million customers, including some 600,000 in North America, who already bought HD DVD machines, by promising that Toshiba will continue to provide product support for the technology.
Neither Sony or Matsushita would disclose the global sales numbers for Blu-ray machines. But the shift in Blu-ray's favor became more decisive during the critical holiday shopping season.
Nishida voluntarily brought up the possibility of class-action lawsuits in the U.S. as he fielded questions from reporters, acknowledging that the idea of disgruntled HD DVD owners had occurred to him.
Class-action lawsuits are fairly rare in Japan, and owners in Japan of HD DVD machines total just 30,000. Nishida denied the company shared in any liability as it had no say in the format of future movies.
Although the format defeat is an embarrassment to Toshiba's image, the quick exit is expected to lessen the potential damage in losses from HD DVD operations.
Goldman Sachs has said pulling out would improve Toshiba's profitability between $370 million and $460 million a year.
