Toshiba taking $500 hit on every cut-price HD DVD player?

[Matt X]

prob. mentioned in one way or another since the Black Friday announcement, but thought I'd drop this tidbit:

http://www.pocket-lint.co.uk/news/ne...p-hddvds.phtml

so the HDDVD fanboys are trashing SONY for taking a "hit" on the PS3???

[Sonny]

Originally Posted by Matt X

prob. mentioned in one way or another since the Black Friday announcement, but thought I'd drop this tidbit:

http://www.pocket-lint.co.uk/news/ne...p-hddvds.phtml

so the HDDVD fanboys are trashing SONY for taking a "hit" on the PS3???

I punched those F*CKERS right in the throat

[ikbradley]

Originally Posted by Matt X

prob. mentioned in one way or another since the Black Friday announcement, but thought I'd drop this tidbit:

http://www.pocket-lint.co.uk/news/ne...p-hddvds.phtml

so the HDDVD fanboys are trashing SONY for taking a "hit" on the PS3???

Thank you very much for this awesome article. I have been questioning the true price of the A-2 over at AVS since the firesale dropped with no response.

I guess there was a reason.

[ottscay]

That was for the A1. The A2 was designed to reduce production costs (and teh A3 even more) so I seriously doubt they cost that much to make anymore. Don't get me wrong, Toshiba is clearly losing money (or else Walmart is) to sell them at that price, but they've been stuck in warehouses so long that they are losing less money by fireselling them to clear room for the A3's.

[maximiza]

ha-ha

[IvanDrago]

Long Time Lurker First Time Poster.

Common guys, this article is complete bunk. I love Blu Ray just as much as the next guy and I wan't to see it kill SDVD (my name for HD DVD btw a take of SVCD ). Lets not stoop to their level and spread FUD like they do.

[Matt X]

Originally Posted by IvanDrago

Long Time Lurker First Time Poster.

Common guys, this article is complete bunk. I love Blu Ray just as much as the next guy and I wan't to see it kill SDVD (my name for HD DVD btw a take of SVCD ). Lets not stoop to their level and spread FUD like they do.

- not trying to spread FUD. the byline for the article STATES "prompt[s] speculation" - it's not FUD if you don't state it as fact and/or common opinion.

But the isuppli data is a widely-used benchmark for determining actual cost for electronics. perhaps those guys have a # for the A2's/3's?????

[spam.curitiba]

[JAGUAR1977]

I doubt it's that high, but they are certainly taking a big hit, in the process killing the market for HD-DVD players priced over $100.

[BluOgre]

Originally Posted by JAGUAR1977

I doubt it's that high, but they are certainly taking a big hit, in the process killing the market for HD-DVD players priced over $100.

Actually I think it'll eventually bleed into killing the market for Bluray players as well. That's why I think this move really hurts the highdef format overall. After the 4th qtr everyone is going to EXPECT cheap highdef players whether it's from HD or Bluray camp.

Right now the only X factor is PS3.....in people's mind it's a Game machine and Bluray player so that could make it worth the price. Standalone players......HD has offically ruined the market for everyone.

[Matt X]

Originally Posted by ottscay

That was for the A1. The A2 was designed to reduce production costs (and teh A3 even more) so I seriously doubt they cost that much to make anymore. Don't get me wrong, Toshiba is clearly losing money (or else Walmart is) to sell them at that price, but they've been stuck in warehouses so long that they are losing less money by fireselling them to clear room for the A3's.

Certainly inventory issues would influence economic decisions. and I agree that product revisions tend to both lower cost and raise quality, w/ CE. I think the A1 # was just for perspective - even IF the A2 is cheaper, it can't be by much, at least not to the extent where Toshy isn't STILL f-ing themselves sideways.

[BluOgre]

Originally Posted by Matt X

prob. mentioned in one way or another since the Black Friday announcement, but thought I'd drop this tidbit:

http://www.pocket-lint.co.uk/news/ne...p-hddvds.phtml

so the HDDVD fanboys are trashing SONY for taking a "hit" on the PS3???

Basically it's suggesting if these players cost X amount at the beginning then the loss has to be $500+ per machine.

The part I'm confused is HD fans are claiming Toshiba is making MORE of these players and they are going to have them at least $200 or less. I doubt the cost to make these is $600+ now but it can't be less than $200....that's for sure.

I'm not sure how they can continue to manufacture these players and sell them for a loss. Sony has done it with the PS3 and lost billions over the past year. Of course it helps when other parts of Sony can make up for this.....how is Toshiba making up for this loss? Microsoft?

[darinp2]

Originally Posted by BluOgre

Of course it helps when other parts of Sony can make up for this.....how is Toshiba making up for this loss? Microsoft?

Toshiba is a huge company. As I said elsewhere, they are investing $8700 million just in some chip stuff. And I believe they make money related to nuclear reactors. Even if they lost a couple hundred million on players ($200 times a million players), they could handle it. And maybe they would be willing to, if the $150 million to Paramount/Dreamworks is right. Toshiba's plans included getting to an installed base of a million quite a while ago, but even their $299 pricing (with $230 from Amazon) wasn't getting them there very fast.

--Darin

[T-Town Oil]

8700 million?

[darinp2]

Originally Posted by T-Town Oil

8700 million?

Not sure about the question. It is $8.7 billion, but I wanted to make it easier to relate how small $200 million is in comparison. People could look at their revenues, profits, or whatever, and see that they could still handle spending a couple hundred million getting players out if they chose to. It isn't like Sony is this huge company and Toshiba is a small company. Toshiba may actually have more capacity for investing money for future return at the moment.

--Darin

[helli3yte]

Originally Posted by T-Town Oil

8700 million?

its the new number system. have you been under a rock. GEEZE

[jsteinhauer]

The decision to drop the price below cost probably also has to do with what the projected profit or loss was when they release the product in the first place. If sales and profits of the A2 and preceding machines met or exceeded projections, then it would only make sense to drop the price to increase sales. You are not hurting your accounting and not chancing a hit in your share price by doing so. It also leads to a fair chance of increasing software sales.

But, as above argued, it impacts future profitability of HD hardware.

[br85]

Originally Posted by T-Town Oil

8700 million?

While the poster already explained why he quoted the number like this, there are times that this is the better system to use, since (while it may be out-of-date now) there are/were some countries that consider/considered a billion to be a million million rather than the thousand million that we are al used to. Makes for less confusion, I would think.

[mystiksuicide]

This won't be the last of the fire sales. After the holiday's I expect to see they're 1080p machines at $99.00

Let's face Toshiba is not a premier company and many customers frown when told only Toshiba makes HD DVD. Especially when so many prestigious companies (Pioneer, Samsung, Panasonic, Sony, Sharp, Denon and Harman Kardon) are backing Blu-Ray!!!!

[RUR]

Pre-existing thread may be found here: https://forum.blu-ray.com/showthread.php?t=22669

Mods, should probably merge this.