scooby_dooby said:
When did I say they were pricing their perihpherals aggresively? Did you miss my post where I speculated the price would be $200+ for the add-on because of MS's ridiculously high peripheral pricing? If you are going to try and 'label' my posts, at least read them ALL. Nowhere am I using rose-coloured glasses, I full y expect their peripherals to remain expensive, but I also fully expect them to battle Sony HARD for market position, and to take advantage of the price difference to really gain marketshare. This means sub $200 core as soon as possible.
They ARE cost reducing, they are cost reducing the CORE GAME MACHINE. it's smart because they can get this CORE GAME MACHINE into more homes, more quickly, due to the lower price.
Perhaps, maybe because you've been rambling and going on for the last several pages arguing - allow me to quote:
scooby_dooby said:
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.
- and your general concious that this
add-on is going to make any difference towards PS3 sales or Blu-Rays strong presence.
I find this all too amusing really. Before this announcement, we've had the very same people that are going on and on about how huge of an advantage this announcement is, arguing that Blu-Ray in PS3 will not make a huge impact on Blu-Rays success as a whole. And now that Microsoft decided to jump on the bandwagon with a more than likely expensive add-on, it suddenly will make a big difference?
scooby_dooby said:
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:
If, and this is an/the if Sony, have done some decent research and, can see that they can afford to put a loss on the raw hardware and, get returns through the games/other divisions, they can rule MS right out of this pricing game. They have the advantage of an inbuilt next-gen video format, pre-existing production of all prehipherals at a largely cut price relative to MS, and are intending to put a lot of the 'special' Premium features of the X360 into their vanilla PS3. By directly targetting the middle-ground between you're Premium and Core in the case of a price war (again pricing just below the cost of the media-add on) they can really hit MS where it hurts as, to both propective sets of customers (aside those who buy solely the plain X360, which looking at many shops - not just forums - doesn't appear to be many at all) from your high-end buyers to Joe who wants a cheap BR player and a few games, you now have a solution that satisfies both with losses recoupped on your monopoly of every media outlet and device that you support.
There are either two scenarios in the very end:
1.) Blu-Ray wins and HD-DVD looses
Then obviously, Sony will be making a lot of money on many fronts (Movie production, possibly Music productions if they go for an audio format on BD eventually) while also bringing down costs in their other devisions that are selling Blu-Ray devices (Sony Blu-Ray stand-alone players etc). We can see the stake and the potential there, so it would make a lot of sense to see Sony already pricing their PS3 very competitive and taking on larger initial losses in order to make sure BD succeeds and ultimately will bring them money on all fronts.
2.) HD-DVD wins abd Blu-Ray looses
Sony will have to keep using Blu-Ray in PS3 and take on the costs of producing the disks since they'll likely be the only ones with a product that they will have to keep supporting for the next 5 - 10 years. They may decide to try and make an audio format out of it (as they've done to an extend with Super-Audio-CD) to get something into the market. The sheer volume of games that will be produced for PS3 (which is obviously dependant on the success of the console) could also bring down costs eventually.
At the moment though, Blu-Ray still has the upper hand and most likely the content as well and we can see as outlined by Kryton where the advantages for Sony are if they make sure Blu-Ray succeeds. It makes sense that they will do everything that's neccessary to ensure exactly that. Given all the factors we know today, I don't see how this announcement for Xbox360 making any larger dent into the larger picture that is, that Blu-Ray has the advantage by technology, by the content support and hardware companies backing it. The cost advantages you are touting for HD-DVD are a smaller issue since it takes a little investment (as does every new transistion to a new medium) and costs of the discs and the potential sales and success will make it a non-issue after it's been out for 10 years.