bbsin said:
HappySqurriel said:
Jason77 said:
Sony making their money base on the sell of blu-ray disk and home entertainment system. PS3 is just a step stone. |
I just want to know why everyone thinks "Blu-Ray" is some sort of super money maker for Sony?
Of all costs associated with Blu-Ray players and discs, the licencing fees on most formats have never been that large of a portion of the total costs; and there are hundreds of companies who get a cut for this due to their involvement with the Blu-Ray consortium, or the technology that is licenced to produce the Blu-Ray format. On top of this, Sony and other companies have had fairly large expenses in order to make Blu-Ray as successful as it currently is ... The hundreds of millions of dollars that were paid in order to get studios to become Blu-Ray exclusive mainly came out of the pocket of a couple of companies (including Sony).
The reason companies like Sony push formats like Blu-Ray has nothing to do with the money they make (directly) from Blu-Ray. The reason they push it is because a new format provides a need for new hardware (like Televisions and surround sound systems), and encourages people to re-buy the same movies they already own ...
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Wrong, there are alot of companies that get tiny returns on bluray profitability but here are 18 companies that can really profit alot directly from sales of BluRay technology. Sony gets by far the most being that they championed the product. The actual forecast for BluRay DVD sales alone for next year are in the billions (maybe 2-3) and will multiply dramatically years down the road if the format stays on track. With that being said, Sony gets roughly 25-30% of that pie... While BluRay can be used as a horse to sell high def displays and audio, the bulk of the profits will come from royalties off disk sales.
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Lets make an assumption that 10% of all Blu-Ray revenue ends up being absorbed as licencing fees, and Sony makes 25% of that (which are both amazingly optimistic numbers); this means that when Blu-Ray has generated $200 Billion in revenue then Sony will have broken even on the PS3 ... How likely is it that the format will sell over 500 Million players (at their current cost) or 6 Billion movies (at their current cost)?
