Why CC is going Blu-ray exclusive (hardware)

[stockstar1138]

First up I want to clarify that IMHO CC is dropping HD DVD hardware right now. Here is why.

1. HD DVD has a ridiculously high level of return rates. You don't want to be selling products that 50% of people bring back. It forces you to lower your price on an open boxed item and it is does not make for happy customers

2. HD DVD offers ridiculously low margins if not forces retailers to sell them at losses in order to get rid of them. As a retailer you are in it to make money, why are you going to be selling something that doesn't make you money??? and its not a loss leader, because the software don't sell well either.

3. CC has never gotten along with Toshiba. CC was originally going to not stock HD DVD at all, but magically they found the "desire" to, along with a few other Toshiba products. With already losing Target, BJs, Woolworth's, and a rumored Best Buy, do you really think Toshiba is willing to spend millions more on keeping CC happy once again. They know its over, thats why G4 players havn't been announced, they can't concede yet, otherwise there is no way that they will sell anymore HD DVD software (and there is litterly millions on the shelves of stores right now).

4. We all know retailers aren't happy in the first place with this war. They have had to dedicate double their space, but don't receive double the money versus if there was only one format. We know retailers are putting pressure on HD DVD to concede, so its no suprise that they are dropping the format. Dropping the format just might be the type of pressure stubborn Toshiba needs.

5. Retailers have more to lose than anybody else. They will be the ones promoting blu-ray more than the CEs or the studios in the future. If we go into a download format because blu-ray fails, CEs and studios still make money, retailers don't. They need to be up their promoting the greatness of blu-ray as much as they can, and having HD DVD on the shelf is a huge hinderence to that.

6. CC can't seem to turn a profit, they maybe hoping that blu-ray sales could add some much needed revenue.

7. Keeping HD DVD on your shelves makes you look like a loser (in the general public's eye HD DVD is dead) and you don't want to be the last one out the door.

thoughts?