Steve 3.2 said:
Sony - They've often focused on pushing their own proprietary formats and standards. Of course there is a lot of money to be made in licensing these technologies, but Sony has often been at the losing end of any of these battles -- VHS vs. Betamax, Memory Stick vs. SD, and I have no clue what the UMD thought it was going up against. They used the PS3 to push the Blu-ray agenda, and so far the system is one of the few saving graces for the format. Without the PS3, HD DVD would probably be in the lead in the high def. player space. But the major problem in that this 'war' is really a small battle right now. Most consumers don't care. And with a lack of games and hype, the PS3 remains in third place. So while they may eventually win the high def. player battle, Sony may lose the even more lucrative video game business. |
I just wanted to point out that:

http://videogames.yahoo.com/newsarticle?eid=470077&page=0
"Besides the impressive June numbers, NPD also released sales stats for the first six months of 2006. As of June 30, the total non-PC game industry had done $4.3 billion worth of business, four percent more than in the first half of 2005. "
Where exactly is the gaming industry more lucrative than the home video industry? $24.3 billion(2005) vs $8.6(maybe 10 in 2007)???Especially considering that if Sony's blu-ray wins(which it will, IMNotSoHO) they get a portion of EVERY BD sold. I know that this is VERY long term, but I think that it's their strategy. Also, HD penetration is MUCH higher than alot of people here seem to think, at least in the US. I do agree with most of your points, I just had the one of my own ;)
According to figures compiled by the DEG based on data from the Consumer Electronics Association (CEA), retailers and manufacturers, an estimated 12.5 million HDTVs were sold to U.S. consumers in 2006. Nearly five million HDTVs sold in the fourth quarter alone.
Since launch in 1998, more than 34.5 million HDTV sets have been sold to consumers. The HDTV household provides the ideal environment to enjoy high definition media players. There are currently 31 million HDTV households which are able to make full use of high definition media players, when set up properly.
The DEG estimates that 11 percent of HDTV owners have more than one set."