Kynes said:
Alby_da_Wolf said:
Kynes said: Just a petition... Since the beginning of this generation, most people defended Sony's strategy with the PS3 based on future revenues of Blu-Ray royalties. Can someone please provide me any numbers of those royalties due to Blu-Ray? |
Sony royalties on Blu Ray are quite a tiny fraction of the forfait fees the consortium receives on drives and discs, except in the cases it produces or publishes the contents or it licenses its specific implementations of the standards to 3rd parties. Sony sells its drives, blank discs and contents too and on them it profits obviously more, but royalties on the tech should be quite low. More than royalties, Blu Ray victory on HD-DVD avoided Sony and other HW companies to pay far higher royalties than Sony's share on BD, to Microsoft, as MS owns the most used implementation, based on Windows CE, of HD-DVD's interactive contents, while BD OTOH uses a Java derivative for them. About codecs, MS gets royalties when its codec for the VC-1 format is used, but alternative codecs can be used too, as the format itself isn't proprietary anymore, MS opened it to have it accepted by both BD and HD-DVD consortia.
Saying Sony gets much money from BD royalties is wrong, it gets money from its whole presence in the BD business, and having won the format war put Sony and the other producers of the winning format in a better situation than the losers, having drives and discs already in production when the war ended and not having to sell at a loss supplies of the losing stuff, but royalties from others are a tiny fraction of the profits..
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So they lost tons of money to not pay a small royaltie to MS, Toshiba and NEC. I don't think it's a very clever strategy.
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Surely not just that. Being an important member of the winning format means not just money, but power. Being an important and big member of the losing format would have meant having to sell the losing format units produced at a loss. Sony doesn't sell just PS3 using BD, it sells standalone BD players and recorders, external and internal BD readers and writers for PCs, it sacrificed PS3 profits to help other products to take off. Most probably it overestimated the benefits on Home Audio and Video Product Category, as Games is currently twice as big, but with hindsight... And HA & V and optical drives for PC would have surely suffered if they were in the losing format. Finally, now that PlayStation isn't anymore the threat against Windows business MS feared, MS competition with Sony isn't so harsh and aggressive anymore, but back then MS support for the competing format was clearly meant as a direct attack also against Sony, not just against Java. BTW the format war raging at PS3 launch caused blue lasers shortages and their price skyrocketing so that Sony suffered a double damage, not having enough units for a simultaneous WW launch, what's worse missing a Xmas launch in Europe, and increased production costs.
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