Does Sony get royalties from each BD sold?

[NJ5]

Gary said:

NJ5 said:

Gary said:
Euhm don't forget they will make money on Blu Players aswell.

Like BKK2 stated:

The numbers add up quickly. Look at DVD, for example. To make a DVD player legally, manufacturers recently had to pay around $4 per player or drive, according to some estimates. A few years ago, those fees were around $15 to $20. Fees get paid every time a DVD drive gets included in a PC. Nearly every PC in the world has a DVD drive these days and roughly 250 million PCs get shipped every year.

Indeed, but it still doesn't look as if Blu-Ray is the magical cash cow which makes all the sacrifices Sony did worthwhile by a big margin. Just the breaking even part seems poised to take a few years if it occurs. I don't know of any other example where a company bled so much money to win a format war (granted I don't pay much attention to format wars in the first place).

I certainly haven't seen a company sacrificing a big brand for the sake of a format war. But of course, they didn't do it on purpose or expect it, not to this extent at least.

 

 

 Yeah so do I,  Sony will rather see this positive, just imagine what a blow Sony could have got if Blu ray lost the format war.

True, losing would be a lot worse to them than to Toshiba. The PS3 would probably be selling less than it is, and all the investment would be gone.