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

[bdbdbd]

@raygun: Let's get this straight:
This is based on assumption that Sony owns around 30% share of BDA and it gets royalties accordingly.
The BD movies you have bought, have made Sony something between 50 cents to a dollar.
The BD drive licencing was 30$ earlier, now it's 9,50$ per drive. So, instead of Sony losing 20$ just with licence fees with PS3 fat, they lose only 6,50$ with the slim. You may notice that you haven't yet even paid the licence it cost to Sony (think about it, fat PS3's BD licence cost Sony 400 000 000 as a company and 600 000 000 SCE).
With 18 games your PS3 was profitable, but if you had bought a PS3, that Sony had made 20$ profit with, and a standalone BD player that Sony had made another 20$ profit, Sony would've made more money. Now they sold you a PS3, that they lost money with, and to add to that, they lost one BD player sale that they had otherwise profited from.

The only way to make the inclusion of BD player a clever choice, is driving HD-DVD out of the market. And even then, BD needs eventually turn into profit. What i read about the reason why Toshiba ditched HD-DVD, was because they didn't believe the HD video discs wouldn't become as popular as DVD, so even winning the (costly) battle, it would be hard to turn the venture profitable. I would be guessing Toshiba laughs its ass off every time they see Sony struggling with PS3.

Sonys (as a company) bad current state is because of recession, increased competition and segments that just lose money anyway, but as we are talking about SCE, it made huge losses even riding the wave of all-time high economic.

The model Sony took with PS3 had worked if PS3 had sold as Sony projected. What Sony projected as PS3 sales at the end of (calendar) 2007, were the numbers of the end of (calendar) 2008. Now it's currently somewhere around projected mid-2008 sales, i believe.