Just hours after Toshiba conceded defeat in the high-definition DVD race, leaving the field to Sony's Blu-Ray technology, the two companies have signed an agreement to form a joint venture to make advanced gaming console chips. 

In terms of the deal, Toshiba will pay about $835-million for Sony's semiconductor business. The putrchase is of Sony's wafer lines for advanced Cell chips which are used in the Sony PlayStation as well as in Toshiba's consumer products.
The company's will also form a joint venture, which will lease the semiconductor facilities now owned by Toshiba, beginning in April.
The joint venture will be 60% owned by Toshiba and 40% by Sony.