Golvellius said:
Toshiba risked everything they had on this format war, and if they lose, they could be financially ruined. Subsidizing their players and providing Universal and Paramount with incentives for exclusive support could have devestating effects on the company if they don't win this war. |
Do you really believe that? Even if we take it for granted that Toshiba is paying Universal and Paramount (which has yet to be proven by a reliable source), they would never spend more than they can afford since HD DVD is only a means for them to keep Sony and the BDA at bay (as it is for MS). IIRC Toshiba owns the majority of the DVD patents, so the current situation (DVD sales by far outshining HD media sales) probably flushes enough money into their pockets to allow them to keep on subsidizing their HD DVD business without risking greater damage for the company.
And on a sidenote: I hope you won't be too disappointed if Warner becomes HD DVD exclusive or even Disney becomes format neutral (this is pure speculation, and should it not happen I'll gladly admit that I was wrong). |
Well, that is very true, Toshiba does own the patents on DVD, and that will provide with a significant influx of cash for many years to come, but the subsidizing of players has got to be hurting them.
As to your Warner/Disney comment, Disney recently started a road show dedicated to promoting Blu-Ray that is travelling across the US. They seem to be supporting the format rather heavily, and it seems unlikely that they would suddenly go neutral after having invested so much in the format. As for Warner, they were initially HD DVD exclusive, only going neutral just a few months prior to HD DVD's launch, so for them to reverse this position, cutting 65% of their potential disc sales, is also very unlikely to happen.
Of course, that is assuming you are only talking of the immediate future. Both of these companies could abandon Blu-Ray in the future should HD DVD start to really gain momentum.
Also, considering the fact that the studios are in this to make money, it would be far more likely for Universal to go neutral than Disney, given the fact that Blu-Ray discs are outselling HD DVD discs on an average of 2:1. Universal would be tripling the potential sales of their discs, where as Disney's potential sales would only increase 1.5x. As it is, the only reason Paramoun has gone HD DVD exclusive is because they have recieved "incentives" from somebody in the HD DVD camp (most likely Toshiba or Microsoft), and even then it is only a temporary exclusivity of around 18 months. If Paramount truly had confidence in the HD DVD format, that would've declared full exclusive support for free. Temporary exclusivity in exchange for certain rewards doesn't show that they forsee HD DVD to win this battle by any means.