T
tsd2005
Guest
Some interesting developments have come about.
First a rundown of Round 1: HD-DVD won the Round decidedly. Their PQ blew away Blu-Ray. They're also $500 less expensive! Currently sales are 9 HD-DVD machines to 1 Blu-Ray. Software is 30 to 1. Things are so bad that Sony owned media services tried to spin a statement from Toshiba President about making a unified standard. Americans look at it (thanks to the media) as a sign of losing. In Japan its the ultimate slap in the face to be winning and offering to help out your opponent. Remember: total HD-DVD player sales (Toshiba and RCA units) are at over 35,000 total. Blu-ray is at 3,800. Selling currently about 10,000 units a month (and rising) vs 3,800 (and falling). The total numbers game in the hardware side will get better for Blu-Ray. However when Sanyo's player hits the market, all bets are off for that continuing.
So I've been told repeatedly about the upcoming PS3 blowing away HD-DVD in the not-so-distant future. Of course I get these remarks from Sony reps. I mention that currently the new Pioneer and Sony players can't fix the problems with the recordings that are on sale. The problem isn't the Samsung unit, it's the discs themselves. Mpeg2 (Blu-Ray) vs VC-1 (HD-DVD), and HD-DVD blows away Blu-Ray in Picture Quality (PQ).
Gamers aren't dumb. They are extremely picky buyers. Sony is full of themselves and the fact that they have currently complete ownership of the Console Market. I remember when Nintendo had the market cornered. They had Sega beat up, and people made fun of Sega. Then Sega had the Genesis. Sega leapt to number 1. Then Sony came out with the Playstation and took over. They did it with better technology and better software. The PS2 was amazing as well. MicroSoft entered the battle with the X-Box a better console in technology hands down. However the software camp was controlled by Sony. That changed over the years and the better games have slowly been coming out on the X-Box.
Currently the X-Box 360 is like HD-DVD. They got in the market first, and this time with a year head start. However everyone started talking how the PS3 was going to be better in technology than the 360. Well in reality the numbers that Sony announced turned out to be bogus. Gamers are talking about it everywhere. The Sony PS3 will not be better technology wise than the 360. The only edge lies in the Blu-Ray drive and the Controller technology. Microsoft has similar controllers about to be released. So that edge is gone.
Microsoft also announced their upcoming HD-DVD versions of the 360. In addition HD-DVD drives can be added to the 360. Cost of the HD-DVD 360 is $449 or $50 less than the entry level PS3 which technically has a Blu-Ray drive, but not the ability to play Blu-Ray movies (you have to buy an accessory pack for that: $129). The $599 Blu-Ray will have the ability to play Blu-Ray movies. $150 separates the two. Plus MicroSoft will be dropping the price of their other 360s $50 a piece. So a $249 version and $349 version will go against the lesser PS3 and its high prices.
Microsoft will have the edge in technology and for the first time: software. Not just the better movie software, but better game software.
Add in the Blu-Ray drive issues.
The reason the Sony player has been delayed is that the low output of drives made Sony feel they wouldn't be able to meet demand for the PS3. Those drives have gone to PS3 manufacturing. Still Sony isn't sure if they can have a million units available before the end of the year.
Microsoft has already sold over 3.5M units. They are currently projected to finally win the console race this month of July with about 400,000 units sold. Even if they only sell 300,000 units a month they will have 5M units already sold when the PS3 goes on sale. Chances are high that the numbers will be closer to 7M. Sony is expecting to sell 6M PS3s by the end of the first quarter of 2007. At that time MicroSoft expects to have 10M 360s out, and about 1M with HD-DVD drives or add on drives.
Yet industry analysts are saying that the chances that the majority of Sony's PS3 buyers will be buying Blu-Ray movies at $30 a pop is extremely low. They estimate only about 5% will be buying up to 3 movies in a year with only 2% actually using it for primarily movie watching (over 3 movies). That still leaves 120,000 regular Blu-Ray devices automatically sold. That is IF Sony meets their expectations for PS3.
The PS3 is $499 or $599. For $599 you get Blu-Ray ability. How many people are really going to spend the extra money on the HD space, HDMI output, and Blu-Ray playability? I'm guessing not as many as Sony thinks.
So it looks like Blu-Ray will just run all over HD-DVD...
However estimates on sales are still that HD-DVD will have around 250,000 sold units by the end of the year. These estimates were made before Sanyo announced their upcoming $349 HD-DVD player.
That is right. HD-DVD is coming to Wal-Mart. At $349 a pop. In November just in time for the Christmas Shopping season.
Toshiba will likely drop their price around November to $399 or $449. RCA will follow suit. Samsung may have their Combo player out by then too at $1,499.
Right now HD-DVD has the edge in picture quality. That won't change with Pioneer and Sony units.
My Pioneer rep said that currently they're banging their heads against the wall about signing an exclusivity deal on Blu-Ray. The only way they can release a HD-DVD player is by releasing a combo player. That is until 2008.
Talking to some guys at CNet they've told me that unless Blu-Ray PQ jumps significantly, that their Christmas Buyers guide will be telling buyers to buy an HD-DVD player over DVD and Blu-Ray! Consumer Reports will likely follow suit.
So Round 2 which is the holiday season will likely end with HD-DVD owning the actual player market, computer market (HD-DVD will be in more computer machines this christmas despite Dell), but not in the Console market. Both camps will call it a win. It will really be a tie.
The actual battle will be fought in Software. If HD-DVD continues to outsell Blu-Ray in Software at the current rate thru Christmas... the battle will have been won by Toshiba. People I know at Disney have told me that current Software Sales numbers have them questioning their decision to side with Blu Ray. That if they continue throught the Holiday Season to have at worst a 3 to 1 Sales edge, then chances are high that in 2007, Disney will be releasing HD-DVDs and Blu-Ray. When Disney sees the numbers are more profitable with HD-DVD (cheaper replication) they may just ditch Blu-Ray.
Yet right now a 30 to 1 edge in Software Sales is massive. Better Product, Better Software, Better Pricing.
I fully believe that come Christmas time when buyers are looking at Christmas presents a High Definition Disc technology costing $500 less than the other will make their decision for them. Even with lying sales people, twice the cost is hard to swallow. Add that the common consumer knows what a DVD is and they know that HD means High Definition. So they know what HD-DVD means. What they don't know is what the hell Blu-Ray means or is.
Case in point at Best Buy on Tuesday buying the new HD-DVD releases I saw a person looking at Blu-Ray discs and his buddy saying "Its probably something stupid and overpriced like those stupid PSP movies." Then they walked the 5 feet to the HD-DVD section... "Wow cool, High Definition DVDs! Man I bet those players cost thousands!" Followed by noticing the Toshiba HD-DVD sales plaque placed right with the movies... "Oh my god! The player only costs $500!!! I have that on my credit card, lets get it!"
I witnessed that exchange. They bought like 8 movies as well. I talked to the kids (college aged) and they said they had a Sanyo HDTV at home they bought for around $500 from Wal-Mart.
Watching the common consumer make that purchasing decision let me know just how strong the name HD-DVD is, and how DUMB Blu-Ray is for a name.
All of this has me leaning towards telling my customers that HD-DVD is the answer. I'll definately know after Christmas. Right now if asked, my advice is "wait, but if you don't want to, and you want the best out of your system, HD-DVD today is the only answer."
First a rundown of Round 1: HD-DVD won the Round decidedly. Their PQ blew away Blu-Ray. They're also $500 less expensive! Currently sales are 9 HD-DVD machines to 1 Blu-Ray. Software is 30 to 1. Things are so bad that Sony owned media services tried to spin a statement from Toshiba President about making a unified standard. Americans look at it (thanks to the media) as a sign of losing. In Japan its the ultimate slap in the face to be winning and offering to help out your opponent. Remember: total HD-DVD player sales (Toshiba and RCA units) are at over 35,000 total. Blu-ray is at 3,800. Selling currently about 10,000 units a month (and rising) vs 3,800 (and falling). The total numbers game in the hardware side will get better for Blu-Ray. However when Sanyo's player hits the market, all bets are off for that continuing.
So I've been told repeatedly about the upcoming PS3 blowing away HD-DVD in the not-so-distant future. Of course I get these remarks from Sony reps. I mention that currently the new Pioneer and Sony players can't fix the problems with the recordings that are on sale. The problem isn't the Samsung unit, it's the discs themselves. Mpeg2 (Blu-Ray) vs VC-1 (HD-DVD), and HD-DVD blows away Blu-Ray in Picture Quality (PQ).
Gamers aren't dumb. They are extremely picky buyers. Sony is full of themselves and the fact that they have currently complete ownership of the Console Market. I remember when Nintendo had the market cornered. They had Sega beat up, and people made fun of Sega. Then Sega had the Genesis. Sega leapt to number 1. Then Sony came out with the Playstation and took over. They did it with better technology and better software. The PS2 was amazing as well. MicroSoft entered the battle with the X-Box a better console in technology hands down. However the software camp was controlled by Sony. That changed over the years and the better games have slowly been coming out on the X-Box.
Currently the X-Box 360 is like HD-DVD. They got in the market first, and this time with a year head start. However everyone started talking how the PS3 was going to be better in technology than the 360. Well in reality the numbers that Sony announced turned out to be bogus. Gamers are talking about it everywhere. The Sony PS3 will not be better technology wise than the 360. The only edge lies in the Blu-Ray drive and the Controller technology. Microsoft has similar controllers about to be released. So that edge is gone.
Microsoft also announced their upcoming HD-DVD versions of the 360. In addition HD-DVD drives can be added to the 360. Cost of the HD-DVD 360 is $449 or $50 less than the entry level PS3 which technically has a Blu-Ray drive, but not the ability to play Blu-Ray movies (you have to buy an accessory pack for that: $129). The $599 Blu-Ray will have the ability to play Blu-Ray movies. $150 separates the two. Plus MicroSoft will be dropping the price of their other 360s $50 a piece. So a $249 version and $349 version will go against the lesser PS3 and its high prices.
Microsoft will have the edge in technology and for the first time: software. Not just the better movie software, but better game software.
Add in the Blu-Ray drive issues.
The reason the Sony player has been delayed is that the low output of drives made Sony feel they wouldn't be able to meet demand for the PS3. Those drives have gone to PS3 manufacturing. Still Sony isn't sure if they can have a million units available before the end of the year.
Microsoft has already sold over 3.5M units. They are currently projected to finally win the console race this month of July with about 400,000 units sold. Even if they only sell 300,000 units a month they will have 5M units already sold when the PS3 goes on sale. Chances are high that the numbers will be closer to 7M. Sony is expecting to sell 6M PS3s by the end of the first quarter of 2007. At that time MicroSoft expects to have 10M 360s out, and about 1M with HD-DVD drives or add on drives.
Yet industry analysts are saying that the chances that the majority of Sony's PS3 buyers will be buying Blu-Ray movies at $30 a pop is extremely low. They estimate only about 5% will be buying up to 3 movies in a year with only 2% actually using it for primarily movie watching (over 3 movies). That still leaves 120,000 regular Blu-Ray devices automatically sold. That is IF Sony meets their expectations for PS3.
The PS3 is $499 or $599. For $599 you get Blu-Ray ability. How many people are really going to spend the extra money on the HD space, HDMI output, and Blu-Ray playability? I'm guessing not as many as Sony thinks.
So it looks like Blu-Ray will just run all over HD-DVD...
However estimates on sales are still that HD-DVD will have around 250,000 sold units by the end of the year. These estimates were made before Sanyo announced their upcoming $349 HD-DVD player.
That is right. HD-DVD is coming to Wal-Mart. At $349 a pop. In November just in time for the Christmas Shopping season.
Toshiba will likely drop their price around November to $399 or $449. RCA will follow suit. Samsung may have their Combo player out by then too at $1,499.
Right now HD-DVD has the edge in picture quality. That won't change with Pioneer and Sony units.
My Pioneer rep said that currently they're banging their heads against the wall about signing an exclusivity deal on Blu-Ray. The only way they can release a HD-DVD player is by releasing a combo player. That is until 2008.
Talking to some guys at CNet they've told me that unless Blu-Ray PQ jumps significantly, that their Christmas Buyers guide will be telling buyers to buy an HD-DVD player over DVD and Blu-Ray! Consumer Reports will likely follow suit.
So Round 2 which is the holiday season will likely end with HD-DVD owning the actual player market, computer market (HD-DVD will be in more computer machines this christmas despite Dell), but not in the Console market. Both camps will call it a win. It will really be a tie.
The actual battle will be fought in Software. If HD-DVD continues to outsell Blu-Ray in Software at the current rate thru Christmas... the battle will have been won by Toshiba. People I know at Disney have told me that current Software Sales numbers have them questioning their decision to side with Blu Ray. That if they continue throught the Holiday Season to have at worst a 3 to 1 Sales edge, then chances are high that in 2007, Disney will be releasing HD-DVDs and Blu-Ray. When Disney sees the numbers are more profitable with HD-DVD (cheaper replication) they may just ditch Blu-Ray.
Yet right now a 30 to 1 edge in Software Sales is massive. Better Product, Better Software, Better Pricing.
I fully believe that come Christmas time when buyers are looking at Christmas presents a High Definition Disc technology costing $500 less than the other will make their decision for them. Even with lying sales people, twice the cost is hard to swallow. Add that the common consumer knows what a DVD is and they know that HD means High Definition. So they know what HD-DVD means. What they don't know is what the hell Blu-Ray means or is.
Case in point at Best Buy on Tuesday buying the new HD-DVD releases I saw a person looking at Blu-Ray discs and his buddy saying "Its probably something stupid and overpriced like those stupid PSP movies." Then they walked the 5 feet to the HD-DVD section... "Wow cool, High Definition DVDs! Man I bet those players cost thousands!" Followed by noticing the Toshiba HD-DVD sales plaque placed right with the movies... "Oh my god! The player only costs $500!!! I have that on my credit card, lets get it!"
I witnessed that exchange. They bought like 8 movies as well. I talked to the kids (college aged) and they said they had a Sanyo HDTV at home they bought for around $500 from Wal-Mart.
Watching the common consumer make that purchasing decision let me know just how strong the name HD-DVD is, and how DUMB Blu-Ray is for a name.
All of this has me leaning towards telling my customers that HD-DVD is the answer. I'll definately know after Christmas. Right now if asked, my advice is "wait, but if you don't want to, and you want the best out of your system, HD-DVD today is the only answer."