Million said:
HappySqurriel said:
dougsdad0629 said:
It's getting REAL tiresome reading stuff like this from people who can't see the bigger picture. Yes, Sony spent a lot of money getting PS3 off the ground and technically those losses all get attributed to the gaming division. The bigger picture is that the PS3 helped Blu-ray become the next-gen standard for optical media. The royalties that Sony is reaping/will reap from Blu-ray will make that money back many times over. Sony is a multifaceted company, much like Microsoft. Sometimes one division has to take a loss in order for other divisions to profit. It's symbiosis.
BTW, before I get flamed for being a Sony fanboy, I own a PS3 and a Wii. |
What are the per-disc royalties on a Blu-Ray disc? Being that promotion of the format is payed for through royalties, and there are multiple members in the Blu-Ray consortium what percentage of those royalties is Sony (really) entitled to?
People seem to forget that the Blu-Ray consortium has already spent Billions of dollars promoting the format and buying exclusive movie studios, and will continue spending hundreds of millions of dollars over the next couple of years, which will eat up most of the royalties. If Blu-Ray is like most formats, after they have broken even (due to upfront costs) they will lower their royalty fess (on discs and players) in order to encourage greater adoption. On top of this Sony will/may end up only receiving a small fraction (possibly 10% to 20%) of those royalties.
In other words, it is highly unlikely that Sony will earn enough money from Blu-Ray royalties in order to recover the costs associated with the PS3.
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Please elaborate on the bolded as I believe you are talking garbage to strengthen your argument , as for Sony not fully recovering the costs of the PS3 with Blu-Ray , that is yet to be seen , if it is anything near as big as DVD was then i'd say your completley wrong but no one can be really certain . What I do understand is that blu-ray growth is faster than that of DVD in the same time period ( I think lol).
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First off, Blu-Ray has been aggressively marketing in magazines, on television, in movies, on DVDs, and in tradeshows; each of these marketing tasks cost money and far more than most people on these sites would imagine.
Beyond that there are 18 board members in the Blu-Ray association, and if royalty fees were distributed equally Sony would only receive 5.5% of royalty fees; assuming a disproportionate distribution of more than 20% towards Sony would be foolish without any further information.
Edit: There are also 66 companies which are contributors to the Blu-Ray format which will likely be paid licencing fees for the technologies they produced and are used in the format.
