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?

[The Don]

so they are only dropping the hardware?...not the movies?..

[greekjgg]

Originally Posted by 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?

I think you could sum up all of your argument to just #4, and a little of #1 as a result of the events the last 4 weeks. The rest are all stretching and your putting too much time into it.

I've been in CC the last two weeks and to be honest, their blu ray setup isn't anything to write home about either. Both are in this little row and they have a crappy selection of media as well.

[elwaylite]

My thinking is similar.

BBuy has really only been the store that carried Toshiba CE stuff in the past. Less loyalty for CCity.

Less money to be made off HDDVD than BD players for sure.

If you are hurting for cash, why was stock on something that has a very LOW income for you.

What would you rather sell and which do you think would make you more money:

A BD30 for $499 or a A2 for $150?

[stockstar1138]

Originally Posted by The Don

so they are only dropping the hardware?...not the movies?..

people buying movies already have HD DVD players in their hands. CC just wants to prevent new HD DVD buyers, thus only canning the hardware. No need to take big losses on software if it is still selling a bit and making some consumers angry.

[The Don]

Originally Posted by stockstar1138

people buying movies already have HD DVD players in their hands. CC just wants to prevent new HD DVD buyers, thus only canning the hardware. No need to take big losses on software if it is still selling a bit and making some consumers angry.

true...they should continue to carry the movies until June 1st...much like the Warner deal..

[greekjgg]

Originally Posted by The Don

true...they should continue to carry the movies until June 1st...much like the Warner deal..

June 1st is only significant to Warner.....there is no reason for CC to honor this date other then for Warner stock.

What I think you'll see by June is that retailers will still carry HD DVD media but in select titles only like new releases and popular catalog sku's for the remainder of 08. Much the same that retailers did with VHS in their final hours.

[Sonny]

They should just get it over with already & send all the HDDVD stuff back

[The Don]

Originally Posted by greekjgg

June 1st is only significant to Warner.....there is no reason for CC to honor this date other then for Warner stock.

What I think you'll see by June is that retailers will still carry HD DVD media but in select titles only like new releases and popular catalog sku's for the remainder of 08. Much the same that retailers did with VHS in their final hours.

I wasn't saying that..

I was saying what they should do....not what they will do....

[elwaylite]

Im still surprised we have not heard ANY comments yet.

I wish someone would just confirm if it was a sale or a dump.

[stockstar1138]

Originally Posted by elwaylite

Im still surprised we have not heard ANY comments yet.

I wish someone would just confirm if it was a sale or a dump.

there isn't going to be some press release out of CC. They will slowly phase HD DVD out, but everything points to them getting rid of HD hardware, not this being sometype of mixup with pricing like the red ants want to claim.

[elwaylite]

Not expecting a release, was hoping for an insider bone.

[york weir]

Was there an article claiming they are dropping HD DVD players? Last I heard they were on clearance but now they are back to regular price. I'm hearing it was a pricing error all along.

[seto]

You would have thought that Circuit City would have learned this lesson from the divx player fiasco they had about a decade ago.

[tlbowers57]

Originally Posted by stockstar1138

there isn't going to be some press release out of CC. They will slowly phase HD DVD out, but everything points to them getting rid of HD hardware, not this being sometype of mixup with pricing like the red ants want to claim.

Over at HD Digest Forum,they are saying that this story is confirmed false, that only the 2nd gen players was to be put on clearance, and mistake has been corrected in stores.

[stockstar1138]

Originally Posted by york weir

Was there an article claiming they are dropping HD DVD players? Last I heard they were on clearance but now they are back to regular price. I'm hearing it was a pricing error all along.

just curious if you have any proof that they are back to regular price.

[york weir]

Originally Posted by stockstar1138

just curious if you have any proof that they are back to regular price.

The website listed the A3 at $100 yesterday. Today it is back to $149.

I went Saturday night and the A3 was priced at $299 and the A30 was at $199.

To me the fact that the website is back to normal pricing indicates it was a sale or a fluke.

[stockstar1138]

Originally Posted by york weir

The website listed the A3 at $100 yesterday. Today it is back to $149.

I went Saturday night and the A3 was priced at $299 and the A30 was at $199.

To me the fact that the website is back to normal pricing indicates it was a sale or a fluke.

if im not mistaken the website has never shown the players as clearence, its only been instore. the a3 should be $149, toshiba slashed the prices over a week ago! and if you went on sat. and your store was affected by this so called pricing error, then the players should have been 100.04. I have yet to hear anybody say the prices went back up at a store that had the players on clearence. if sombody could confirm that they saw the players at 100.04 and they are now back up to 149 that would be helpful.

[bkbluray]

It makes sense to get rid of the players if half the people buying them going to come back unsatisfied.

[elwaylite]

The website NEVER had them at $100. I looked all day off and on.

I thought someone posted that they were still buying units today at these prices.