How the format war was won - Sony outspent, outsold Toshiba

The only way for Sony to distribute Blu-ray in large quantities was to build the technology into the PlayStation 3 and sell the games console at a discount. Sony's console division ran up a $1.97 billion deficit in the year to March 31 last year, which it followed with a $991 million loss in the first three quarters of the current year. Yet the true costs of Blu-ray are probably much greater: early research and development expenses have not been included.

Analysts believe, however, that Sony will recoup its $3billion-plus investment eventually. Richard Hooper, an analyst with Screen Digest, said: "It is hard to estimate precisely what royalties Sony will generate, but we believe that they will be able to recoup far more than $3 billion over the lifetime of Blu-ray. It's worth it."

"Only the PlayStation 3 is future- proofed; it is not clear what will happen to other players which do not have ethernet [fast internet] connections," Mr Hooper said.

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Bill Gates3654d ago

I forgot all about this picture. I love it....AHHAHAHHAHHAH

That BABOON got "nocked da fuk out".....AHHHHHAHAHHA

niall773654d ago

and move on.

all this talk just makes the HD DVD camp look even more sad at the moment.

Lifendz3654d ago

Makes for an interesting read imo. Think about it: what did Sony get so much flak for last year? The price, lack of games, but probably how blu-ray wasn't necessary. That games don't need so much storage space due to compression. Well here we are with blu-ray being vital to games like Uncharted (which doesn't need a stupid 5 gig install btw), and blu-ray movies looking like the way of the future. I like reading it because it validates my decision to get a PS3. That and the fact that 360s are still breaking.

BTW, Transformers on blu-ray is going to be great.

gamesR4fun3654d ago

but still approved it since its a legit story.

bung tickler3654d ago

what anti sony slant? is it anti sony to say that they spent 3 billion to win the format war? that they used the ps3 mainly to push thier movie format at gamers expense? its what sony did... so does that make sony anti sony?

gamesR4fun3654d ago (Edited 3654d ago )

"Sony's victory in the high-definition format war is a badly needed win for the Japanese electronics giant, after a series of humiliating failures that have left control of the music market with Apple"
"consumers have been saddled with a more expensive format and Sony's losses to make up"
"The only way for Sony to distribute Blu-ray in large quantities was to build the technology into the PlayStation 3 and sell the games console at a discount"
"Sony and its consumers still have to pay a price. For the company, it comes from building the expensive technology into a games console, which Sony executives concede is being sold at a loss"
"For customers, unlike those of Toshiba's HD-DVD, which was fully developed, Sony left some features out as it raced to get the product to market"
"That means that people who have bought a standalone Blu-ray player may have to buy new equipment if they want to take advantage of new features, making them, like HD-DVD owners, casualties of the high-definition format war"

Certainly not pro Sony I mean its a BR article but they had to bring up the console war and even the old music thing. Typical bs spin ie Sony won by loosing money on the ps3 and that the format was unfinished and that for some reasons b/r players arnt updatable because they 'rushed' it lol buy a new br disk and watch it update that stand alone player... Crap bs hype typical North American news...

bung tickler3654d ago

still all facts... so whats your point?

gamesR4fun3654d ago

"7 days 12 hours ago
@popemup: see you are the perfect example... you didnt even read the article im sure... you dont even know what you are talking about. let me make it weasy for you blu-ray = DRM hell, HD DVD = fair use.

- mode edit: leave your fanboism in the OZ - "

you might want one of those mode edits yourself.

BobDog3654d ago

toxic "used the ps3 mainly to push thier movie format at gamers expense"
gamers expense how? blu ray is not a draw back u noob

Gina-get-u3654d ago

That's just calling a spade a spade.

Everything you quoted from the article is true. The writer did his research, and every conclusion stated is supported by figures or quotes directly attributed to named sources. This is the business section of a mainstream paper after all, not a gamer blog. Why don't you try submitting a resume to one of these places and see how far you get? If the article doesn't make Sony look good then perhaps its because the truth doesn't make Sony look good. The format war was a real struggle after all and you don't win these things by playing nice.

You need to grow up.

gamesR4fun3654d ago

Gina-get-u so your saying you dont see any kind of anti Sony slant on this article?
I already made my point on the second post and really dont want to make it again but the fact is this article is heavily biased against Sony.
@ least imo....

Gina-get-u3654d ago

To "slant" as it is generally understood, means to interpret or present something in line with a special interest, which usually means an unstated agenda. When you accuse a writer of slanting his piece, it implies an unfair attempt to manipulate the reader's opinion for purposes other than communicating the honest truth. It's not slanting when the writer's conclusions are logically dictated by the findings from his/her reasonably thorough research and/or investigation.

So no, I don't see a slant in that article.

+ Show (6) more repliesLast reply 3654d ago
niall773654d ago

... instead of spening money buying studio 18 month exclusive deals.

they made the smarter moves

ruibing3654d ago

And a wasteful multi-million dollar Superbowl ad.

Maddens Raiders3654d ago

isn't that the law of the land?

v1c1ous3654d ago

they suck and are evil m i rite?

Maddens Raiders3654d ago (Edited 3654d ago )

console manufacturing practices in this era do suck. Even a Microsoft defender like you viscious can admit to that. As far as "evil", I've never called them evil and besides that, what does MSFT have to do w/ (((any))) of this?

All I asked was, "Isn't survival of the fittest the law of the land?" As far as the 360 goes, I'm not sure if MSFT's 360 fit's into this paradigm or the argument you're trying to conjure up to be quite honest.

Take care.

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