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steven787 said:
If Sony thinks they can use the PS3 to decide the HD-Disc format war than they will cut the price again.

If they can sell 25-30 million PS3's than the format war is over by 2010 (before it was really supposed to begin).

25-30 million PS3's could mean a billion HD movie players and drives over the next 20 years and billions of discs, all with a licensing fee being paid to Sony and Blu-ray License holders. These losses would become an investment.

 I would agree except that right now things aren't locked into that pattern just yet.  People as well as studios are very interested in digital distribution.  The ipod craze wet their apetite and now that folks know its out there they are interested.

I won't say it can topple the physical media altogether but it just might take a very large bite out of sony's pie.  Other formats won't have nearly as much of an effect because studios will already be locked into contracts with the winner of the format war long before any newcomers could have an impact.  The exception is of course unless someone comes out with a format that can use existing DVD players and yet still provide full length HD movies with room for extra content.  Something that is possible btw as the tech is available .

In any case it is definitely a possibility that Sony has decided to forsake any profits in the short term and look completely to the 2010 and beyond timeframe for their redmemption & profits.  The rest of the company can probably shoulder the burden barring any unforseen issues but you know they aren't going to like it even with a nice carrot being dangled out in front.

Ultimately I think sony is playing with fire right now and they might get burned or they might cook a gourmet meal...but they aren't going to end up with plain ole hamburger helper at this point..its an all or nothing type of thing they either look incredibly brilliant or incredibly stupid when this is all over. And honestly there is no way to tell how its going to turn out right now.



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