RancidLunchmeat
Veteran
Geez.. As much as PC-Engine clearly hates Sony, DemoCoder must own stock.
Sony can't afford to give away BR drives anymore than MS can afford to take a loss on them.
JVD: No, because that $10 loss will only occur during the first year or two of sales, and you were (I believe?) predicting TOTAL sales volume in your estimation for the loss MS would incur.
In fact, the sooner MS and HD-DVD comes to market, the sooner the tech becomes mainstream and the sooner the reduction in loss (perhaps to a point of profit) will occur.
I guestimated $10 extra cost, and therefore.. $10 extra loss (because all new consoles will sell with a loss), only for the immediate future. Once HD-DVD becomes "the standard" all other drives will be obsolete (BC) and the costs will drop drastically. In fact, if Xbox (whatever) launches with a HD-DVD and HD-DVD movies are available during the same cycle (say Xmas 2005), by the time the PS3 launches HD-DVD will have already established itself in the market place and that additional $10 cost will be gone.
This isn't something like BR, who if nobody adopts it BUT the PS3, will continue to suffer from increased manufacturing costs throughout its entire lifecycle.
IF (and it's a big IF) MS puts HD-DVD in the Xbox2, then studios will follow (and I've read reports that studios can start producing HD-DVDs as soon as a "player" is announced) and in a year's time, it will be Sony that will have to decide to either go with the "Standard" or go with their own BR (and possibly better... but unsupported) tech.
Bottom line is, that Sony will NOT recoup the R&D costs on the BR unless they integrate it into the PS3 AND get support from somebody else.
Toshiba can easily go for lower profit margins on the HD-DVD and promote them to MS with Samsung manufacturing and make up their R&D costs in volume.. Not just on the Xbox2, but also on HD-DVD sales that will come about due to the Xbox2 sales.
Sony can't afford to give away BR drives anymore than MS can afford to take a loss on them.
JVD: No, because that $10 loss will only occur during the first year or two of sales, and you were (I believe?) predicting TOTAL sales volume in your estimation for the loss MS would incur.
In fact, the sooner MS and HD-DVD comes to market, the sooner the tech becomes mainstream and the sooner the reduction in loss (perhaps to a point of profit) will occur.
I guestimated $10 extra cost, and therefore.. $10 extra loss (because all new consoles will sell with a loss), only for the immediate future. Once HD-DVD becomes "the standard" all other drives will be obsolete (BC) and the costs will drop drastically. In fact, if Xbox (whatever) launches with a HD-DVD and HD-DVD movies are available during the same cycle (say Xmas 2005), by the time the PS3 launches HD-DVD will have already established itself in the market place and that additional $10 cost will be gone.
This isn't something like BR, who if nobody adopts it BUT the PS3, will continue to suffer from increased manufacturing costs throughout its entire lifecycle.
IF (and it's a big IF) MS puts HD-DVD in the Xbox2, then studios will follow (and I've read reports that studios can start producing HD-DVDs as soon as a "player" is announced) and in a year's time, it will be Sony that will have to decide to either go with the "Standard" or go with their own BR (and possibly better... but unsupported) tech.
Bottom line is, that Sony will NOT recoup the R&D costs on the BR unless they integrate it into the PS3 AND get support from somebody else.
Toshiba can easily go for lower profit margins on the HD-DVD and promote them to MS with Samsung manufacturing and make up their R&D costs in volume.. Not just on the Xbox2, but also on HD-DVD sales that will come about due to the Xbox2 sales.