The honest answer is that HD DVD lost because Toshiba ran all of the profit out of the technology. There was no reason for any CE company to make HD DVD because they could not make a profit.
In the aftermath of HD DVD's demise, Toshiba's own financial reports show this to be the case. The Nikkei reported that Toshiba's losses on HD DVD totaled $982 million USD in just 2007. That is a loss of over $100 per HD DVD player sold.
Blu-ray devices are expensive but every Blu-ray stand alone device is being sold at a profit. The exception is the PS3 which is a gaming console. And this is the third generation in a row that Sony has sold the Playstation as a loss leader.
When it comes down to it Toshiba backed themselves into a corner. They subsidized the cost of the hardware with no real plan to recoup that money. Movie studios did not want to move to a hardware platform that was essentially a monopoly. Hardware makers did not want to manufacture players that would have to be sold at a loss.
HD-DVD lost because there was only one hardware manufacturer and there could only be one hardware manufacturer. Toshiba was taking a huge loss on each player sold, which was bad for them, but also made it impossible for any other manufacturer to come in and make money selling players either.
HD-DVD lost because of toshiba IMO, and they can only blame themselves for it. They like other's here have pointed out by their own fault only made the players themselves, very bad move if your goal(which it should be in the first case) is market penetration. I think that everyone here understand in fine details about these HD formats, bit rates, resolutions, ect.., but joe 6-pack doesn't and the thing that toshiba didn't do or take advantage of was informing potential buyers what was so special about these new disks.
Sony is at least talking about resolution factor, but with upscaling dvd players out there joe 6-pack takes one look at juno on dvd then laughs when he see that the HD version is $34. One thing that I'm not sure of , but think I remember hearing is if sony takes a royalty on every blu-ray and if so what the damages are for studios? I wonder if that makes any difference on the price?
Reader Comments (Page 1 of 1)
jlmcp @ Apr 29th 2008 5:56PM
Why is it that HD DVD lost again?
Jimmy @ Apr 29th 2008 8:31PM
The honest answer is that HD DVD lost because Toshiba ran all of the profit out of the technology. There was no reason for any CE company to make HD DVD because they could not make a profit.
In the aftermath of HD DVD's demise, Toshiba's own financial reports show this to be the case. The Nikkei reported that Toshiba's losses on HD DVD totaled $982 million USD in just 2007. That is a loss of over $100 per HD DVD player sold.
Blu-ray devices are expensive but every Blu-ray stand alone device is being sold at a profit. The exception is the PS3 which is a gaming console. And this is the third generation in a row that Sony has sold the Playstation as a loss leader.
When it comes down to it Toshiba backed themselves into a corner. They subsidized the cost of the hardware with no real plan to recoup that money. Movie studios did not want to move to a hardware platform that was essentially a monopoly. Hardware makers did not want to manufacture players that would have to be sold at a loss.
why not the LS2LS7? @ Apr 29th 2008 9:46PM
HD-DVD lost because there was only one hardware manufacturer and there could only be one hardware manufacturer. Toshiba was taking a huge loss on each player sold, which was bad for them, but also made it impossible for any other manufacturer to come in and make money selling players either.
HD-DVD didn't lose, it was never in the running.
Doc @ Apr 29th 2008 11:34PM
HD-DVD lost because of toshiba IMO, and they can only blame themselves for it. They like other's here have pointed out by their own fault only made the players themselves, very bad move if your goal(which it should be in the first case) is market penetration. I think that everyone here understand in fine details about these HD formats, bit rates, resolutions, ect.., but joe 6-pack doesn't and the thing that toshiba didn't do or take advantage of was informing potential buyers what was so special about these new disks.
Sony is at least talking about resolution factor, but with upscaling dvd players out there joe 6-pack takes one look at juno on dvd then laughs when he see that the HD version is $34. One thing that I'm not sure of , but think I remember hearing is if sony takes a royalty on every blu-ray and if so what the damages are for studios? I wonder if that makes any difference on the price?