Video Asylum

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

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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 if 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)

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