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"Is HD DVD really more affordable?" Across the board, the hardware is generally less expensive, and...

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Audiophilander

In Reply to: RE: Is HD DVD really more affordable ? posted by oscar on August 21, 2007 at 05:24:59

... the software prices apparently aren't a wash since HD-DVDs are easier and cheaper to produce. SONY is apparently willing to absorb a percentage of the hardware AND software production costs in order to remain price point competitive with HD-DVD. Who knows how long that will continue.
>>> "Economies of scale would eventually drive Blu-Ray (and HD DVD) hardware costs to something close to DVD player prices." <<<
True, but will a $100 Blu-ray player be more appealing than, say, a $60 HD-DVD player if both appear to deliver the same goods? As far as software capacity is concerned, will Joe Public see any advantage to taking a steamer trunk on a 2 hour trip when an overnight bag will suffice? ;0)
Now that Paramount has formally jumped ship on Blu-ray I wouldn't expect this format war to end for years. I'm pretty sure that retailers aren't happy about carrying dual inventories or studios making exclusivity deals favoring just one format, but that's what's happening.
The bottom line is that both HD formats are headed for 'niche city' unless the hardware manufacturers can get player costs down sufficiently enough to make multi-format players appealing to Joe Public. Exclusivity raises the ante, because then it's not just an issue of capacity or software cost, but rather the consumer's tastes in movies. It's a hardball tactic that could backfire, as a frustrated consumer being pressured to choose between favorite films released only in one or the other format will likely tell both formats to take a hike in lieu of having a reasonably priced multi-format player or mandated dual inventory solution.
AuPh

This is from Dec. '06; it's just as true today from the average consumer's perspective. (Open in New Window)

Edits: 08/21/07

Follow Ups:

You won't need an "expensive" Multiformat player if a single format prevails in this war. - oscar 07:07:32 08/22/07 (1)
And that's just one of the problems with having a raging format war. A lot of people just aren't ready yet to commit money to a "potential Betamax".

I still half-expect the retailers to play a role. If it's clear one format is losing the sales battle, the Best Buys of this world just might stop carrying the losing format's product or at least stop maintaining dual inventories of the same HD movie. After all, they can always sell the DVD version.
- Multi-format players will come down in price as well, and trust me, this war isn't ending anytime soon. - Audiophilander 11:21:28 08/22/07 (0)
  [Image from Erich Von Stroheim's silent classic GREED]
  > > > "And that's just one of the problems with having a raging format war. A lot of people just aren't ready yet to commit money to a "potential Betamax"." < < <
  But Oscar, you're trying to compare apples and oranges, or rather Apple & an an Orangutan! The VHS/Beta war had no compromise solution; to my knowledge there were never any videotape machines manufactured or marketed to consumers capable of playing both formats. Returning to my analogy, that's the monkey wrench, my friend: this is an 800lb gorilla, and it ain't goin' away anytime soon, at least not without making a grab for all the bananas!
  This isn't just about software capacity or consumer hunger for a high definition delivery system for movies. From my ringside seat it looks like another heavy-weight grudge match between Bill Gates and Steve Jobs! In one corner you have Microsoft, with it's formidable clout and industry dominance, backing HD-DVD, and in the other you have SONY, partnered with Disney which owns PIXAR with Steve Jobs it's largest shareholder.
  Here's another analogy (Oh, nooooOOOOO! -grin); this time boxing (Don King would be envious):
  The strategies include rope-a-dope (heavy promotion to lure sideline gamblers, or rather, early adopters), fading (dropping prices), one-two punches (up to 5 'free' movies with either boxer's p-o-p label), below the belt jabs (exclusivity deals), hitting side-lined consumers with sucker punches (ring side seats for those willing to invest in early round players offered at rock bottom prices) and finally, the most devious strategy of all, hanging back for later rounds (holding back key titles)
  If I were you, I wouldn't hold my breath waiting for either Bill Gates or Steve Jobs to blink, oscar. I suspect that this format war (Boxer rebellion? -grin) is going to be with us much longer than any of the others. Might as well settle in and opt for a decent multi-format player with the right features when the prices come down. Keep in mind that Microsoft is still an undefeated heavyweight, and Apple, all the hype aside, is still the hungry contender trying to figure an angle to knock the champ out for the count with a well placed haymaker; depending upon who is officiating, the best one can hope for is that this bout will end in a draw. ;0)
  Cheers,
  AuPh
  - Steve Jobs (SONY/Disney/Pixar) - Old news, but it's easy to see where this is leading. (Open in New Window)
  Edits: 08/22/07 08/22/07

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