Re: When will the price of Blu-Ray hardware start to drop?
Quote:
| Could the limited number of units available from Toshiba be because Toshiba can't handle selling any more units under cost at the moment? |
The numbers don't support that possibility. If the Toshiba subsidy is, say, $300 a player (it's still not certain there is a subsidy), then if they've sold, say 50,000 players, they'd be losing $15 million. I remember reading that Toshiba is a conglomerate with annual revenue in the mid $40 billion range (comparable to Sony). Everyone talks about Sony subsidizing MILLIONS of PS3s (at $300 a pop) without so much as batting an eye (ironically, Toshiba played a role in the development of the Cell chip in the PS3, which means that strong PS3 sales could mean lots of revenues for Toshiba). That makes what Toshiba has to shell out seem like chicken feed. And if Toshiba really HAS sold 50,000 players in the first three months, I'd think they'd be rather happy...
Quote:
| Any player Toshiba releases in the future will be expected to be at the $500-$600 price or lower. |
2G and subsequent players are cheaper to manufacture. If the cost falls below $500, Toshiba's position becomes much stronger (including enticing other manufacturers).
Quote:
| So why all the fuss over a $1000-$1200 Blu-Ray player? |
Simple: People can legitimately ask "why should I shell out 1000 to 1300 bucks for a BD player when the HDDVD player sells for only 500, and most everyone agrees that HDVD titles look BETTER than BD titles right now, with MORE capacity?" If you're being asked to spend 2-2 1/2 times as much, you expect something BETTER. Instead, you're getting something WORSE. It isn't the buyer's responsibility to worry about the manufacturer's costs, or what calculations he made about his business risks and potential benefits that led him to his pricing decisions. All people need ask is "what's the better buy?". Right now, it's HDDVD. Could that change? Sure, but people are perfectly justified in saying to the BD people "hey! You'd better work your ASSES off to make BD better and more valuable, because what you've shown us so far isn't!".