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Blu-ray Sony's Downfall?

It isn't cheap to produce a console that plays Blu-ray discs. Sony's PS3 costs more than $800 to produce, with cosnumers charged $600 for the new system. That's $200 more than PS3's nearest competitor, Microsoft's Xbox 360. Sony is banking on consumers' desire for the new Blu-ray player to overcome concerns over the hefty price tag. That could prove to be a dangerous gamble on Sony's part.

Yankee Group analyst Michael Goodman told Reuters that "Blu-ray is adding $150 to $200 to the [cost of PS3]. They've created something that is not for today's market. It's not a market driver, it's only driving the price higher."

Trend-watcher Cymfony surveyed 18,000 blog posts and message boards and discovered that positive Internet discussions about HD-DVD were 46% higher than for Blu-ray. "Negative Blu-ray conversation indicated a lack of consumer trust in Sony, as well as gamer displeasure with selling Blu-ray in association with PlayStation 3," Cymphony's Jim Nail told Reuters.

Sony has displayed no public concerns about Blu-ray. Many people bought the PS2 specifically for its DVD playback capabilities, so it is possible the PS3 will see great success if consumers choose Blu-ray over HD-DVD.

"The likelihood of people using PS3s as DVD players is significant, particularly when you're talking about millions of consoles Sony expects to sell," Andy Parsons, a spokesman for the Blu-ray Disc Association said. "Blu-ray's here to stay."

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FKN Unbelievable3793d ago (Edited 3793d ago )

Xbox 360 Is. They was'nt ready for it. they got caught offguard.They though MS was Going to lay down after the original Xbox but they did'nt. It was Just a first round Knockdown not a knockout. IF i was Sonee i Would Just stay down on this one. No Sense getting you @ss Pounded out 12 straight Rounds if you know you ain't ready. Might as Well take a dive and Blame it on FOOL-RAY. Sonee Forgot how it was to hungry and maybe the feeling would come back around on the next system by then MS would be the Dominant force with a big @ss lead like sonee was till whomever knock them off which i high doubt.

MicroGamer3793d ago

it can't take all the credit for knocking Sony out this round. If Sony had gone with DVD-9, they likely could have launched in the Spring like they originally intended with good production numbers and been price competitive with the 360 and made a real fight of it. Blu Ray caused their launch to be delayed and understocked and made the consoles too expensive to be competitive. There will be some nice games for PS3 and a lot of movies released exclusively on Blu Ray, but there just aren't enough units out there now to matter, and I don't think there will be in time for Blu Ray/PS3 to overtake HD-DVD/360. It is going to take 2-3 years for PS3 to reach a price point where it starts to really sell in large numbers, unless Sony decides to bite the bullet and make their loss per unit even bigger just to get them out there, but at the same time, Nintendo and Microsoft will also be lowering their prices to keep Sony the most expensive game system out there. Prices on HD-DVD players will drop faster than Blu Ray players, as well, because they are selling faster, and the more you sell, the cheaper it is to make more because of larger volume pricing on components and assembly lines running at full capacity instead of below capacity are more efficient. Sony is backed into a corner and I don't see them coming out of it with all the other problems they are having both financially, and in terms of public perception of the company and it's motives. Microsoft has taken great strides in recent years to improve their public image while Sony's image has gotten worse and worse. Microsoft still has a lot of work to do, too, but at least they are showing some signs of improvement.

dfb19773793d ago

So the hardcore gamers will buy it regardless and some wealthier families will buy into the Media Centre hype of it. The only problem I foresee with this format war is that both sides seemed to of under estimated the progress of technology. We've (UK) been able to get broadband TV services for quite a while now and other service providers are entering the market and pushing the technology further and at a very quick rate. We have the video market place and once the studio's have sorted the legal implications I think we will have widespread movie download services very very soon. I admit this will be to a smaller market than maybe physical DVD sales can get to but it is definately the future and will be here sooner than either the HD and Blu-Ray backers seem to think. I think the money would of been better spent developing this technology rather than HD DVD and Blu-Ray. As with music downloads the technology is going to force the hand of movie world.

Bhai3793d ago

...how much effort the media is putting into getting up such a news and publishing it...Hah ! even if blu-ray looses, PS3 will come to DVDs that's all, they will always have the choice...unlike 360, but PS3 will always stay ahead with HDD, motion control, full backward-compatibility and you know most outstanding exclusive titles...such news are now LAME-square !!! HAHAHA !

dfb19773793d ago

what do you mean if Blu Ray fails the PS3 will come to DVD, they always have the choice?, Xbox 360 plays DVD's

darx3793d ago

But what about the suckers who paid the full $600+ for their system. That does not seem fair too me. I don't care though I have my 360.

FKN Unbelievable3793d ago

" but PS3 will always stay ahead with HDD, motion control, full backward-compatibility and you know most outstanding exclusive titles...such news are now LAME-square !!! HAHAHA ! "

Quarintine The Topic. He's here and he's bringing that terrible poison they call Denial in our atmosphere.

richie007bond3793d ago

If i have said it once ive said it a thousand times,if and when i get myself a PS3 it will be for GAMES ONLY and i repeat GAMES ONLY i will not buy BETA RAY movies not ever am not interested in a shoved in my face format!!!!!!! SONY are you listening.Sony have pissed me off big time with their sheer arragance and their blatant disregard for consumers,sony only care about forcing a format regardless of what it costs in the end,thinking people will still buy it just cause its SONY not this time sony its a whole new ball game this time around

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