PlayStation 3: The HD-DVD Killer?

[Dave]

News Analysis
PlayStation 3: The HD-DVD Killer?
http://www.tvpredictions.com/ps3102006.htm


New game console will include a Blu-ray DVD player.
By Phillip Swann

Washington, D.C. (October 20, 2006) -- The buzz is building.

Sony yesterday showcased its Play Station 3 video game console at a press party in San Francisco. The device, which will be launched in North America on November 17, left some journalists shaking their heads in awe.

Commenting on the eye-popping graphics in NHL 2K7, a pro hockey game, CNET's Daniel Terdiman wrote: "I focus on the stellar graphics, the realism of the ice, and I have to remind myself that this is not a televised hockey game."

PS3's graphics better be realistic -- with some analysts calling its price tag unrealistic ($500 or $600, depending upon the size of the hard drive.) But yesterday in San Francisco, the consensus seemed to be that Sony will have no trouble selling its new console.

"At the end of the day, Sony still has tremendous brand loyalty here and they'll sell millions," said P.J. McNealy, an American Technology Research analyst.

And that's great news for backers of Sony's new Blu-ray high-def DVD format. The PS3 will play Blu-ray discs; in fact, Sony is including a free Blu-ray copy of Will Ferrell's Talladega Nights: The Ballad of Ricky Bobby with the first 400,000 units.



To date, Blu-ray -- and its format rival, HD-DVD (backed by Toshiba) -- has been a disaster. Remembering the Beta vs. VHS format war of the 1980s, consumers are hesitant to buy the new high-def DVD players because they fear they will pick the wrong format. No one wants to buy a player that could soon be obsolete.

But millions of gaming enthusiasts will want PS3 -- and many of them will give Blu-ray a try because they have nothing to lose. If they like the Blu-ray DVD picture, which can display 1080p high-def if connected to a 1080p HDTV, they will likely purchase or rent some Blu-ray discs.

Consequently, PS3 could suddenly give Blu-ray a big boost in its battle with HD-DVD.

While it's true that Microsoft will soon sell a HD-DVD adapter with its XBox 360 console, the high-def DVD player will require a separate purchase ($199). But PS3 comes with Blu-ray regardless of whether you want it or not.

PS3's hefty price tag might still give some shoppers pause. But if the analysts and journalists are right, the video game console could be the big hit of 2007 -- giving Blu-ray a huge advantage in this format war.

http://www.tvpredictions.com/ps3102006.htm