Study finds high prices, hamstrung players limiting Blu-ray's dominance

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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.

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Jimmy @ Apr 29th 2008 8:31PM

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