The technology is only expensive because nobody has mass-produced it. Before Sony and everybody began mass-producing the blu-ray player, it cost just as much.
Since nobody has stepped forward to actually push production of this concept, it's going to be ridiculously expensive.
Also, as nobody has done so, I'd really like to see where you guys are getting your numbers. Sounds like you're just pulling them out of your asses and you really haven't taken the time to know what the hell you're talking about.
Anyhow, here's some fun information about holographic storage:
(1) As it uses light instead of magnetism, electricity, etc, to store and relay its information, it is MUCH faster than current conventional storage concepts. Conventional storage has to read one bit at a time (which it may do VERY quickly, but it's still one after another after another). Holographic storage, however, can read millions of bits at once, therefore exponentially speeding things up.
(2) Holographic storage is theorized to be able to store "tens of terabits" per cubic centimeter (in other words, one hell of a lot in a tiny space). Currently, inPhase Technologies has reported 500GB per cubic inch, but that was two years ago and they've surely made progress since then. Even so, 500GB in a cubic inch of space = TITANIC.
(3) The concept has been around for over forty years, with actual examples of the tech existing as far back as the late '90s. It's taken a while to reach commercial plausibility mainly because it's such a drastic difference from standard technology.
(4) Nintendo and inPhase have filed a patent together for some sort of holographic storage technology. With that said, we may be seeing a holographic storage solution released for the Wii, with Nintendo's next console using holographic storage for everything. If Nintendo does this, it'll mean two things. One, they'll be the pioneers of this revolutionary tech. Being such a big company in such a big market means huge influence. If Nintendo really does utilize this, and they're able to keep costs minimal, this technology will see guaranteed public acceptance. Two, since they'll be the pioneers of the tech, if they do it right, Nintendo will become tenfold the company they are today. This tech alone could very possibly cause Nintendo to grow to compete with Sony and Microsoft at the worldwide corporate influence level - far beyond just their videogame divisions.
See, it all depends on who utilizes it first. If done right, marketed right, produced right, etc, Nintendo could set the standard behind commercial holographic data storage. That would result in THEM owning a part in all holographic storage sold in the future. And if they market and produce it right, making it practical enough for the everyday consumer, then worldwide acceptance is guaranteed.
This is potentially big. This is potentially very big.
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