CNET format war articles

[baccusboy]

http://reviews.cnet.com/4520-6449_7-...?tag=cnetfd.mt

In other words, Toshiba, the HD DVD Promotion Group, and Microsoft can talk all they want about interactivity and in-movie experiences, but the only way HD DVD is winning this war is on price. As it stands, this is a race to the bottom, and the more I look at it, the more I realize that I was wrong to think that a format war was bad. We need these guys to beat each other up. We need Toshiba and Microsoft to push Sony and its allies to make better and cheaper Blu-ray players. We need Universal to stay red. We need this war, folks. Give it a chance.

Interesting take. I am all for lower prices.

[The Big Blue]

Disagree totally. The harm caused at this point far outweighs the benefit.

[mike79]

I just read this article. From what it says, Universal is not going to be going Blu. Very intersting article.

[dialog_gvf]

So, this is the latest stay alive tactic by Microsoft? Push the idea that the vast majority of consumers should stick on the sidelines indefinitely waiting for an outcome?

WE need that, or Microsoft does?

All over saving a few $100 on a player when you'd expect $1000s being spent on software?

So, what if someone were to tell everyone to wait two years for the prices of the processors and PCs (with the video/audio) needed to properly run all HD content to drop? Sound like a good idea now Microsoft?

Gary

[Dorfdad]

Originally Posted by mike79

I just read this article. From what it says, Universal is not going to be going Blu. Very intersting article.

So universal has decided to step out of the Home Media alltogether? Come on you know and I know that in 2008 if Universal does not make Blu-Ray titles they are basically committing suicide.

[babyBlu]

This "war" is stunting Blu-ray's growth as a format, not good.

[Blu Tiger]

We do need this war...to be over!

[baccusboy]

Originally Posted by babyBlu

This "war" is stunting Blu-ray's growth as a format, not good.

How so? Blu-ray can only grow once HD-DVD is gone, right?

What is to fear here? Downloads?

[The Don]

Originally Posted by Dorfdad

So universal has decided to step out of the Home Media alltogether? Come on you know and I know that in 2008 if Universal does not make Blu-Ray titles they are basically committing suicide.

I think that's a bit harsh...

they will still have sales in the DVD department....but the HD market will have been a waste as they are leaving alot of money on the table...

[dialog_gvf]

Originally Posted by The Don

but the HD market will have been a waste as they are leaving alot of money on the table...

Or, at the very least, failing to make the strategic move to push people toward higher margin premium product.

Sitting on their hands and waiting for HD to get to mass market pentration is also deciding to only accept mass market margins.

Pretty dumb. The transition from early through general and then to mass market is margin gravy that they are threatening to ignore.

Gary

[baccusboy]

Originally Posted by The Big Blue

Disagree totally. The harm caused at this point far outweighs the benefit.

If universal were to turn blue in a short while after player prices and media have dropped, then what harm would it have done to anyone other than companies seeking higher prices?

[Blu-Ray Buckeye]

He should say "we need this war temporarily". You only need ti long enough to establish reasonably low prices. Beyond that consumers will take over as the driving force, since we the people never allow for prices to sharply go back up once an expectation has been set. If the battle can force a $399 PS3 at some point next year then the rest will take care of itself. The public will forevermore assume that they will be able to get it at that price or lower or that if the price does drift upward that they'll be getting a far superior product. This is the way of CE. Clearly I'm not trying to single out PS3, just using it as a proxy for all blu-ray machines.

[binarymelon]

Competition drives down prices. While all blu-ray manufacturers and studios may seem like they're on the same team now, once the format war is over it's every man for themselves. Something will help drive down Blu-ray prices one way or another. Not to mention market saturation will be reached much sooner if the format war ends sooner than later, which will help spur innovation in manufacturing processes which will further lower costs.

[nhaase]

Originally Posted by binarymelon

Competition drives down prices. While all blu-ray manufacturers and studios may seem like they're on the same team now, once the format war is over it's every man for themselves. Something will help drive down Blu-ray prices one way or another. Not to mention market saturation will be reached much sooner if the format war ends sooner than later, which will help spur innovation in manufacturing processes which will further lower costs.

Right now, w/ it being summer, you're not going to see big price drops. In the fall, once people are starting spend again for holidays and because there aren't as many outdoor activities, and the nights are longer, prices will drop. They'll especially drop for the holiday season, but right now, as Daniel Craig says in Layer Cake, "Make hay while the sun shines."

[jermwhl]

I think the "need" for the war is over. Prices have fell drastically since inception. The prices are going to stable out for now, because there isn't enough demand. Once demand increases manufacturers should be able to get better prices on materials which will drive prices down even further. We will see price cuts for holidays, but major price cuts will come once one format is decided and supply and demand are in full swing!

[The Big Blue]

I think one thing some people have wrong is this idea that there is some magic pricepoint where all hell breaks loose and 95% of the consumers rush out and buy a Blu-ray deck/PS3. Each price reduction finds a group/% of people who are now comfortable to jump in. Look what's happening with the PS3 right now for an example. We don't have any hard numbers yet but obviously there is a group/% of people who have decided to buy the PS3 at it's $500 price tag. Some are going to wait till it's $400 and so on. It's incremental.

[The Don]

Originally Posted by baccusboy

http://reviews.cnet.com/4520-6449_7-...?tag=cnetfd.mt



Interesting take. I am all for lower prices.

I think alot of people have already looked at it from this point of view...

but the fact remains that people will not make a purchase as long as there is a format war...

plain and simple...

[reiella]

Eh, I dunno.

It's alot harder to raise prices than it is to lower them.

Once @ the 99$ mark, it'll be hard for Toshiba [and everyone else who produces HD-DVD players] to not have their 'low-end' HD-DVD players at that mark. And, well, if that price point can't make money for another year, that's another year of 'loss-leading'.

[zombieking]

I think $400-$600 for a blu-ray player now is phenomenal for the best technology out there to watch a movie. the movies themselves may be a little costly at times, but I believe if a consumer wants it that badly, they'll pay pretty much anything to get it. And for the rest that don't, well, they're not really the technologically driven, movie loving folks that everyone on here is.

[RichiPuppy]

I think his point was that people are going to start to wonder why their over the air picture looks better then their dvd picture, and then in turn there may be a whole bunch more people wanting the high def video media.