Sony & Microsoft discussing Blu-ray in XBox 360

[WickyWoo]

Not happening. More FUD

[Grubert]

That's what I initially thought, but it's now April 2 and they're still going with it:

http://www.digitimes.com/systems/a20080401PD216.html

Blu-ray Xbox 360s may sell at a loss, say Taiwan makers
Jimmy Hsu, Taipei; Adam Hwang, DIGITIMES [Wednesday 2 April 2008]


If, as previously reported, Microsoft adopts built-in Blu-ray Disc (BD)-ROM drives for a new version of its Xbox 360, sales prices are likely to be lower than the corresponding production costs since current OEM quotes for BD-ROM drives are as high as US$95-100, according to industry sources in Taiwan.

It is reported that Microsoft plans to offer a new Xbox 360 hardware revision equipped with a BD-ROM drive to compete with Sony's PlayStation 3. Taiwan-based Lite-On IT is said to have been invited to participate in designing the drive.

However, while the US$95-100 quoted for a BD-ROM drive is much higher than US$18-20 quoted for the DVD-ROM drives built into current Xbox 360s, the increase in retail price of the new consoles is unlikely to cover the whole of the OEM price gap, the sources analyzed, meaning Microsoft would be selling the consoles at a loss.

In addition, Sony, as a main global producer of BD-ROM pick-up heads, may decide to combat the market competition by selectively reducing the supply of key BD-ROM components to OEM makers partnering with Microsoft on the new Xbox 360 drives, the sources noted.

Microsoft responded in saying it does not comment on market rumors.

[dobyblue]

From Consumer Electronics Daily:

[PaulGo]

Blu-ray Xbox 360 to be sold at a loss?

By James Sherwood
2nd April 2008 13:09 GMT

Microsoft is on track to have sold 2m UK Xbox 360s by next week. But the company could be forced to sell Blu-ray models at a loss, if rumours about HD drive development are true.

Figures from market watcher Chart Track have forecast that since the console’s December 2005 UK release, Microsoft will have shifted around 2m units by 13 April. The PlayStation 3 (PS3), which launched here in March 2007, only just hit the 1m sales barrier in February.

Dorian Bloch, director of UK sales at Chart Track, said the Xbox 360 is extremely popular in the UK and that “Sony has a long way to go” before the PS3 overtakes Microsoft’s console.

Recent European price cuts to the entire Xbox 360 range have helped to boost the console's sales over the past few weeks. But Microsoft is bound to be searching for new ways to maintain the unit's popularity - and Blu-ray is thought to be the chosen path.

Yesterday Register Hardware reported that Microsoft was rumoured to have inked a deal with Taiwanese manufacturer Lite-On for manufacture of Blu-ray drives. It’s thought the drives will be integrated into a new Xbox 360 model, helping Microsoft compete with the Blu-ray enabled PS3.

However, a Taiwanese source has since told DigiTimes that each Blu-ray drive will cost Microsoft around $100 (£50/€75), while each existing Xbox 360 DVD-ROM drive is only thought to cost it around $20.

The source claimed that this price hike will force Microsoft to sell the console at a loss, because consumers will be unwilling to pay the premium for a Blu-ray Xbox 360 – which could see them turn to the PS3 instead.

http://www.reghardware.co.uk/2008/04...t_track_sales/

[CassilineKnight]

This is such bs...

MS won't do this. They might (probably already are) have a Bluray ADD ON in the works (made by anyone other than sony).

But if really believes that MS will be dropping a brand new console with built in Bluray then you're delusional.

[PaulGo]

It actually makes a lot more sense for Microsoft coming out with the "Xbox 720" in 2010 with a built in Blu-ray drive. But who knows anything is possible when it comes to Microsoft of they feel threatened.

[Cyorg]

First M$ say they would consider Blu Ray when HD DVD died, then they were actually in formal talks with Sony (or BDA) about it, then they said that they never had any intention to use Blu Ray, and now they're discussing it again... Whatever. Wake me up when something real happens; not that I'd buy any of their crap anyway.

[plee]

I doubt it will be internal until the next generation xbox (720?) comes along. It will probably be just an add-on if anything, remember the developers must not use any hard drive or anything more than DVD so it would be pointless inside the 360.

[xtop]

i still dont get why people think microsoft is going to launch a new console in 2010..makes zero sense

[Elandyll]

I still think it's quite probably jsut a rumor, but if MS is really contemplating a new Xbox with BR player, they are probably waiting to se the results of the whole of Q1 2008 (where they just might have lost their 2nd place in sales overall) before anouncing any decision, and will deny anything until then?

/shrug.

In any case, even if they do such a console, they will lose some mega bucks on it, I doubt that it'll be quite as good as the PS3 in Blu Ray playing (Sony had a year+ to perfect the support) and they still won't be able to produce games on BD under penalty of alienating the whole of their existing customer base (this being said, PS3 developpers need to start using the BD capacity more).
So, in essence, on top of paying royalties to Sony, they would definitely be shooting themselves in the foot (on top of the humiliation to have to support Java instead of HDi, from their arch-rival Sun).

[dobyblue]

Originally Posted by PaulGo

Blu-ray Xbox 360 to be sold at a loss?

By James Sherwood
2nd April 2008 13:09 GMT

Microsoft is on track to have sold 2m UK Xbox 360s by next week. But the company could be forced to sell Blu-ray models at a loss, if rumours about HD drive development are true.

Figures from market watcher Chart Track have forecast that since the console’s December 2005 UK release, Microsoft will have shifted around 2m units by 13 April. The PlayStation 3 (PS3), which launched here in March 2007, only just hit the 1m sales barrier in February.

Dorian Bloch, director of UK sales at Chart Track, said the Xbox 360 is extremely popular in the UK and that “Sony has a long way to go” before the PS3 overtakes Microsoft’s console.

Hmm, so the PS3 has sold 1m in one year, the 360 2m in 2y4m and the PS3 has a long way to go?

[ottscay]

From what was discussed by insiders regarding the aborted hd dvd drive 360, it was going to be marketed as more of an all-in-one premium home theater/entertainment hub. Microsoft cares more about positioning themselves in the home theater convergence market (with the hope that they will be able to supply some of the middleware), so I don't see any reason why they wouldn't release something similar with Blu-ray now.

Certainly they aren't going to create a 360 SKU that just has BD built in (that would raise the problem with people wanting to release games on BDs), but if it's a hidef (BD) player/music server/online portal/gaming machine then you get around the expectation that games will be released (during the current generation) on BDs. And it would get more people using an IE spinnoff with MS pluggins (and in all probability their online store), so I could see them doing this.

[SilverFireshot]

Mark my words, the BD 360 add on will be Microsoft's big announcement at E3 this year.

[xwingsct]

This might be a good thing. it means that they'll be more BD players in every household and it will drive the price of BD player down faster.
Eventually Xbox will need some kind of media with higher capacity for their games, what they're using right now might not be enough. Their next gen might have a BD drive instead of DVD drive.