| bbsin said: Let's look at it another way. First thing is first, we are basing this assumption off the possibility that by 2010. BluRay will have generated 30 billion in revenue. 30 billion x 10 percent licensing. 3 billion x .25 (assumed Sony's BOD cut) = 750 million. So there we have it. Sony would get 750 million based off of BluRay licensing alone.... but the BluRay royalties (as you said earlier) is not enough to cover the process of research, promotion and transitions it took to implement the format to almost everyone of their products. Which brings me to this. As of 2007 Sony accounted for 20% of the BluRay market share and will in all likely hood increase. Sony says they plan to get 50% market share, we all know that's nigh impossible. I'll go with a honest 32% market share because of they're banking on the format more than anyone else. So if we count 30% from the 30 billion dollars of revenue as Sony's market share, we'd be getting 9 billion dollars of revenue. I'm not sure how much profit is in that 9billion, but I'm guessing that the PS3 costs would be worth it given the potential profits they can get by BluRay in general. Also, none of this includes PS3 game royalties, PS2, and PSP sales. |
Didn't you have a problem with my quote:
"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 ..."
Now, being that most Blu-Ray hardware that is sold is the PS3 then it is unlikely that the sales of Blu-Ray hardware will help much towards making the PS3 profitable. This means that the sales of movies and related hardware are the primary factors for Sony to be profitable off of Blu-Ray; since its fair to assume that they only make slightly more money off of selling new movies on Blu-Ray compared to selling the same movies on DVD it would be fair to say that the most profit is generated off of selling old movies that people (may) already own.
Basically, WHAT I SAID INITIALLY WAS TRUE and you objected because it was not amazingly optimistic about the value of Blu-Ray. The interesting thing is that these profits would have been generated by Sony regardless of which HD format became popular so it was moronic for them to push Blu-Ray so hard.
