Paramount's Switch Failed To Turn Market

[reider]

Originally Posted by JohnGalt

Advertising aside (since both formats can easily be advertised simultaneously) this makes little sense. The smaller the sales volume the tougher it is to recoup the relatively fixed cost of developing the title but pressing costs go down as volume goes up. What the heck are they talking about?

It is quite easy actually. You are correct with all your reasoning, but you missing one significant point - overproduction. Unsold balances are getting bigger and bigger and having two formats doubles that expense.