Ken_F
Stunt Coordinator
- Joined
- Nov 13, 1998
- Messages
- 136
The problem is no one really wants to build a $500 player for either format at this point. Toshiba is selling their player at close to break even, perhaps even a small loss, to establish market share. It is a full-featured player, and none of those companies you mentioned are interested in selling a $1000-$1500 player with a similar feature set that won't sell. In an interview a few months ago, an executive from Panasonic said flat out that it wasn't possible to design a profitable first-generation player for sale at $500.
In contrast, on Blu-ray, Sony has encouraged CE vendors to price their product at levels that net significant margins. Every announced BD player is priced at $999 to $1899. The components in HD-DVD and BD players are almost identical, yet if CE companies stick in a BD-ROM reader, they can price it at $1000-$1500, because that's what everyone else is doing. If they stick in a HD DVD-ROM reader, they've got to charge closer to $500 if they want to sell product, because that's what the competition is doing.
You will see more HD-DVD players from other companies when:
In contrast, on Blu-ray, Sony has encouraged CE vendors to price their product at levels that net significant margins. Every announced BD player is priced at $999 to $1899. The components in HD-DVD and BD players are almost identical, yet if CE companies stick in a BD-ROM reader, they can price it at $1000-$1500, because that's what everyone else is doing. If they stick in a HD DVD-ROM reader, they've got to charge closer to $500 if they want to sell product, because that's what the competition is doing.
You will see more HD-DVD players from other companies when:
- the technology exists to allow others to really differentiate their product (technology doesn't really exist to do that yet) in a substantiative way to justify a premium-priced product; or
- component prices fall to a sufficient level to allow other companies to compete with Toshiba in the