Does the Wii prove that the HD razor/blade model is flawed?

[Grimes]

theprof00 said:

Sony owns nearly a 30% stake, so I'd say they make 2-3 pennies per disc.

Additionally you're forgetting that every BR drive has a charge of $9.50 and every BR recordable drive will run 14$.

In America alone, there were 11M BR players in July 2009, including ps3s.

From July, there have been another 2.8M ps3s sold, but I don't know how many standalones were sold in that period.

This also does not include PC drives.

Also, in the last week, 79M$ worth of movies were sold. 84% of BR movies are 29.99 and under, with 50% being 20-29.99. As an estimate I will say the average price is 25$. Dividing 79M by 25= three point something, or, 3.16M discs sold. At 3 cents per movie, Sony made 95,000$ in royalties last week.

Additionally, they've made say 3$ per player in existence, which, in America, excluding holiday standalone sales, equals 42M$ in royalties.

 

Those pennies add up. I'm astounded that they can actually make 100,000 a week doing nothing.

 

You are forgetting that the BDA is a business entity in of itself, which has its own operating expenses. They have to pay for managerial staff, R&D, marketing, licensing, collections, anti-piracy, legal, expenses for partner meetings, etc. They probably take a big chunk of that royalty just to maintain operations.

Also, I'd like to see an source for that 30% Sony stake as I haven't seen any hard data to back that number.