scooby_dooby
Legend
Kryton said:For MS this might be genius, for Sony sticking a 'half-decent' BD drive into PS3 is genius also.
Not really as Sony has still commited themselves to a huge risk, and if BR fails, they have done nothing but waste hundreds of millions of dollars.
MS's stretegiy involves no risk. As for costs, they are selling the HD-DVD add-on for PROFIT, so I fail to see your point.
This allows them to cost reduce teh core much quicker, without losing additional money on the hardware. Selling more core's will increase marketshare and start bringing in real money for MS. They don't make money off the consoles, they make it from licensing.
Kryton said:As smart as not rushing 6 months and having to invest all the cost of setitng up such a line? Their gamble of pushing to launch has arguably already failed but, and this is easy to say, with hindsight, would waiting and supporting HD have helped? Who knows.
already failed? 6 million consoles sold by the time PS launched? 8-10 by the time it hits US shores? That is not a failure my friend, it's a huge advantage.
Kryton said:Producing a new manufacturing line allows quicker cost reduction? It may allow more profit to be made on those few who do not want the movie facilities and those that do pay a premium, yes.
Huh? They need not set up a new line for the core version of the console, this can be agressively cost reduced. Any costs associated with the HD-DVD peripheral will be covered the price of the unit which they sell for a PROFIT.
Kryton said:But this isn't the crux of the entire issue. This is. Sony isn't just a computer company like MS, it is a media company; a film producer, a music giant etc. etc. etc. They will may far more profit in being on the licensing board for BR (every player remember is money to them, as it is for MS and HD DVD) yet they will make far more on every disk they themselves produce and ship. We all know how music industry pricing works and where the money ends up, the studios pockets, and guess who is the studio.
I'm not arguing that with greater risk != greater reward. Sony will make more money from BR tahn MS from HD-dvd, but they also take a much higher risk.
Kryton said:Agressive pricing on the core package is unlikely when you consider that this is, supposed to be, the machine that MS gets money back out of.
This is where your logic falls apart completely. To truly make MS money they need to gain marketshare, to gain marketshare they have to hit the $150-200 pricepoint ASAP. By not including HD-DVD they can do this much more quickly without taking big losses on the HS.
Kryton said:Sony has MS again though, here, even if core is agressively priced and, if they simply meet it.
Meet what? The core will probably be $150-200 cheaper than PS3 next holiday season, the majority of consumers next season will not care about HD-DVD, they will care about pricing and games.
This trend can continue every year with MS aggressivly pushing the pricepoint, while sony struggles to match it. We will probably see a $99 core 360 looooong before we see a $99 ps3.