bumidan on 30 June 2008
I understand that royalties do have some effect.
But even if you look at Philips at a cursory glance, they swing between billions in profits and billions in losses - more likely due to the cyclical nature of semiconductors.
While Blu-Ray may eventually be profitable for Sony, my main contention is that it is not the most important part of the business. For a company like Sony, it will not make or break them, whether they get a billion here or there from royalties.
Whereas if their electronics division suddenly bleed money like crazy, they will be in serious trouble.
Generally, all many electronics companies have a hand in whatever new media standard is set anyway - so they are more or less on equal footing.
