Blockbuster fallout... and vicious circles.

[ps3andlovinit]

Secondary effects of todays announcement .. vicious circles.

1. This will increase the number of used players and discs on the market as some people unload their HD-DVD stuff..further eating into new purchases..further eroding HD-DVD's smaller market share...vicious circle #1.

2. Conversley J6P will see this as blu-ray being the winner and blu-ray will go in the opposite direction of HD-DVD..vicious circle #2.

3. One of the arguments people have always made in the console wars is they can always add the HD add-on to the 360 later and get the "same" thing as the PS3 offers. It's not true but that was the story. It was presented as an advantage since it spread out the cost over time. Heres the point - basically they are admitting HiDef was something desired - just not right now. With todays Blockbuster blow that argument just lost the wind as well..so if you want HiDef Movies the PS3 is now clearly the console of choice...resulting in fewer HD-DVD add-ons being sold (as well as 360's) ..vicious circle #3.

Lucky thing Sony had so "few" games available to give the nascent blu-ray movie industry a boost in sales at the early stages..and now the fall and holiday game onslaught is coming...

The movie side was the most important piece to overall success, console was second - in terms of timing anyways.