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Pach-Attack- How Much is Microsoft Paying Sony?

GT:On this week's Pach-Attack, Michael Pachter looks at how much Sony stands to gain from Blu-Ray implementation in the Xbox One

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Marcello1509d ago

Hey Pach forgot to mention a buck for every bluray disc sold for xbox one, that will run into 100`s of millions !!

blackmagic1509d ago (Edited 1509d ago )

Sony only gets a small fraction of the royalties from the blu-ray standard, they are only one of the nine major electronics firms that founded the Blu-ray standard and they are only one of the eighteen firms making up the Blu-ray Disc Association which continues to develop and collect royalties on the Blu-ray standard and there are dozens of other companies that own and collect royalties from the BDA on the critical patents that the blu-ray standard requires, ironically, Microsoft being one of them for their proprietary VC-1 video codec.

Pach, once again, showing his very limited knowledge.

kneon1509d ago

Out of all the members Sony and Phillips hold the most IP used in bluray so I expect they get more than the others. But it's still not as much as people might think. Besides, Sony and Phillips also are the main owners for the CD and DVD IP so Microsoft has been giving them money all along. Switching to bluray is likely only a small bump up in royalty payments.

Also these kinds of tech royalty deals usually have maximum limits and sliding scales that reduce the per unit royalty after certain targets are met.

greenlantern28141509d ago

but they do get some of every blu-ray sold so he has a point, may not be accurate on the numbers but i am sure sony is happy to have more people buying blu-rays. of course this is assuming people that are buying the xb1 dont already have blu-ray players. which they most likely do. so his speculation could be very pointless

AmazingBrian1509d ago

@greenlantern2814 blu-rays aren't just movies dude.... the games will be on blu-ray format too

magicted1509d ago

Even though Sony is on the Blu-ray board the own most of the patents for Blu-ray disc and Panasonic own most of the patents for Blu-ray players. Both those companies do get a little more in royalties then the rest.

1509d ago
pixelsword1509d ago (Edited 1509d ago )

Dear xbone fans:

Thanks for the cash to fund our "gamez".

Signed,

PS4 fans

j/k

ALLWRONG1509d ago

I love watching people pretend to know what they're talking about.

Minute Man 7211509d ago

No one used VC - 1 anymore, thou it gives a softer 3D'ish look to films

blackmagic1508d ago

@Hollywoodland
I didn't say sony didn't get any money from blu-ray nor did I say that microsoft makes more money, I said sony is not the sole beneficiary and only recieves a fraction of the total royalty paid as a result.

SMPTE is a standards association. MPEG LA, an intellectual property rights management firm, is the entity which collects on behalf of the codec patent holders.

page 8
2% or $0.02 per title
http://www.mpegla.com/main/...

@minute man 721
There are 8 blu-ray releases using VC-1 this week (July 9th).
http://www.blu-ray.com/movi...
http://www.blu-ray.com/movi...
http://www.blu-ray.com/movi...
http://www.blu-ray.com/movi...
http://www.blu-ray.com/movi...
http://www.blu-ray.com/movi...
http://www.blu-ray.com/movi...
http://www.blu-ray.com/movi...

Tsar4ever011508d ago (Edited 1508d ago )

Yeah, this is probably true, Sony's getting a little something out of this. But on the other side of the coin. Sony may be paying some patient royalties to MS cuz their console is every bit of AMD hardware as MS's console, also PS4 officially supports MS's DX 11.1 api, it been confirmed on many sites already. Whether or not devs utilize dx11 for sony games or not doesn't matter, the FACT is ps4 could run it may be enough to have to pay MS. Even though sony has upgraded it's own api that presumes to surpass the the limitations of dx 11 & opengl named PSL/PlayStation Shader Language but we won't see any graphical effects of psl till later in the console life cycle.

So the lesson of this post is patient royalties in biz sometimes SWINGS BOTH WAYS, ya'll.

SniperControl1508d ago

@HOLLYWOODLAND

Not sure about this Hollywood, maybe you can correct me, but didnt the studios decide to drop the VC-1 codec and go for the H264 codec instead due to a higher compression rate?

I am sure i heard this somewhere? but i could be wrong.

+ Show (9) more repliesLast reply 1508d ago
dedicatedtogamers1509d ago

What Sony will gain is reputation, not necessarily money. For every Blu Ray that sells on X1, it will be a vindication for the PS3. It also means that more cross-gen games will appear on PS3 for a longer period of time.

And if/when another format war arises, people will say "Remember how BR versus HD-DVD turned out? I'm buying whatever Sony supports".

Sitdown1509d ago

Just like they did with betamax ehh?

dedicatedtogamers1509d ago

@ Sitdown

If the best "zinger" you can muster is a failure from the late '70s, that kinda proves my point, doesn't it?

I mean, you could've gone with something like UMD or minidisc, but betamax? C'mon...

Heartnet1509d ago

i think the average Consumer has completely forgotton Hd-Dvd..

Sitdown1509d ago

@dedicatedtigamers

Since my post went over your head it's evident that you don't even understand your own rant.....as you prove my point; you think people will now automatically blindly go with Sony just because bluray won out over hd-dvd, when history has shown the market has regularly turned down products that Sony has supported regarding formats. Can you explain your ps3 vindication theory? Also your cross gen logic.

@Heartnet
Exactly, and I doubt most people automatically think Sony when discussing bluray.

madpuppy1509d ago

@Sitdown

regarding Betamax, it was (is) a better format than VHS, but, not enough for the average consumer to care and spend more on it, also, VHS had an 8hr recording time and betamax, being smaller only had a 6hr recording time on it's slowest recording mode. so, a more expensive price and shorter record time over was a deal breaker for the consumer that didn't mind the degradation in quality in comparison, a win for JVC for sure.
But, Betamax was VERY popular in the professional sector and is still used in the television industry, (although, digital media eg: HD and solid state) is replacing it now.

HugoDrax1509d ago (Edited 1509d ago )

I remember how it turned out. It's funny because at the time the more affordable/consumer friendly product was HDDVD. It was cheaper to manufacture and cost less than Blu Ray. The deciding factor was Universal Studios which was supporting HDDVD format at the time. I recall reading an article that stated Toshiba could only fork over approx 180Million to Universal and Sony countered that offer with 300-380 Million. Once that was decided, it was a done deal. Blu Ray format was the victor. I'll look for the articles online, may take a while but I do remember the war as being Sony vs Toshiba not necessarily Sony VS Microsoft.

mwjw6961509d ago

@madpuppy Betamax has not been used in the industry for 10+ years. I don't know what backwoods tech place you know of. Digital and DVD has been the base for a long time.

You also forgot the main reason VHS took off vs Betamax. PORN! VHS was the only ones that would let the porn industry use their tech. It almost single handily won that war.

loulou1509d ago (Edited 1509d ago )

dedicated to fanboys. wtf? seriously? you just write any nonsense to get bubbles.

if anything, ps3s blu-ray what sort of vindicated by the lack of multi-disc games on. that is all.

saying that the x1s blu-ray inclusion is the vindication is utter nonsense. and wtf is this cross gen sh#t you are talking about????

and like i said, your typical pathetic bubble fishing comment. you truely are the worst troll on here

badz1491509d ago

Sony never countered the $180m given to Universal and Paramount by Microsoft. It was a bold move but worked to delay the inevitable as Transformers was mad exclusive to HD DVD at that time.

the deciding factor was Warner who up until that time, released on both formats but ultimately decided to side with BD, possibly convinced by the sale ratio of BD which was always higher than HD DVD. following that announcement, all major studios except Paramount and Universal are on the BD bandwagon. they had to jump ship and then Toshiba announced the discontinuation.

DigitalRaptor1509d ago

@ loulou

Pot. Kettle. I hope you know the rest.

truthteller1509d ago (Edited 1509d ago )

@dedicatedtogamers

I agree. Sony does have an edge at cross-platform games but only with first-party studios. Third-party will most likely make for all consoles ( current gen and next, not excluding 360 - example Destiny ) or only next-gen. But I also doubt Sony will let it's studios make cross-gen titles b/c they want PS4 to sell. Maybe Japan studios.

loulou1508d ago

ofcourse i know the rest raptor. i dont suck sonys bell, so automatically i am an xbox fanboy... even though i have a ps4 on pre-order

+ Show (9) more repliesLast reply 1508d ago
Heartnet1509d ago

a buck for every disc? way to high me thinkz.. 2 dollars royaltys for the drive.. ur looking at pennies if that per disc

HugoDrax1509d ago (Edited 1509d ago )

How about how much is SONY paying Microsoft for use of Direct X11 in the PS4?

Both companies are paying one another. Microsoft is paying SONY a small fraction for Blu-Ray, and SONY is paying Microsoft a small fraction for use of Direct X11.

*EDIT*
What ignorant Sony fanboy clicked Disagree, but didn't reply? without doing research to see I stated facts? Not rumors, but facts. It is a fact that Direct X is a component of Microsoft Windows. It is used by a plethora of software applications for graphics visualization. Also used for games developed on the Dreamcast, Xbox, X360. Now it will be used by Sony on the PS4.

Microsoft Source:
http://www.bit-tech.net/new...

Sony Source:
http://www.geek.com/games/s...

sak5001509d ago (Edited 1509d ago )

Well said Auric...

LOL, Sony uses Windows in their notebooks. Only to fanboys it's like a victory if X1 uses bluray but for those two big conglomerates it's nature of business and they are not mortal enemies to each other. They have been collaborating on many things for tons of years and only started against each other over consoles.

mwjw6961509d ago Show
Persistantthug1509d ago (Edited 1509d ago )

DirectX is not something anyone needs or has to use.
DirectX is an API tool, and its main purpose is to consolidate many different devices, so that, for example, an ATI GPU can effectively be programed the same as an NVIDIA GPU. This is used so that is makes it easier, primarily for PC programers.

One downside of DirectX, is the fact that developers can't ever really get the full potential of said device.

None of Sony's consoles or handhelds have ever used or needed DirectX.

YNWA961509d ago

Remember, Sony are not in this for the money....

1509d ago
pixelsword1509d ago (Edited 1509d ago )

At any rate, yeah, whether people will admit it or not, Xbone purchases will go to sony; nothing wrong with that, it's just the way it is.

I guess blu-ray is needed this gen.