From Sony europe Boss :

 http://www.eurogamer.net/article.php?article_id=79731

I hope they are planning a TRUE price cut for europe in October.

From analyst about blueRay :

http://ce.seekingalpha.com/article/40949

A very interesting read and a view held by a few folk on here already.

Most people know that Sony are using the PS3 as the deciding force for the winner of the HD video format war, although the only real problem is that Sony needs people to be buying the PS3.  They have sold a reasonable to mediocre 3.7m units so far, but ideally, they want them to start selling significantly more than that.  This is why they have had to reduce the price by $100.  I don't think it will be too long before there is another price reduction and I honestly reckon it will be $399 or less within 12 months from now. 

Hmmm.. interesting read!!

Although some things I'd like to point out regarding the HD-DVD / Blue-Ray situation:

Currently there has been 100,000 add Blue-ray players sold and 3.6 million ps3's sold totaling 3,700,000 potential Blue ray players.

HD-DVD systems are at roughly the 300,000 mark in total including the 360 HD-DVD drive...

Now logic would suggest that the Blue-ray Vs HD-DVD attach rate would be between 5:1 and 10:1 (Being that there are 10 x the amount of blue ray players out there). However the article is stating that it is Only 2:1 - Which I am sure will be including all bonus movies that come with the PS3 / blue-ray purchase as well as HD-DVD.

SO, taking it from this context, Blue-ray Media sales are extreemly poor in comparison to HD-DVD media when taking attach ratio's into account.

If, For some reason HD-DVD hit's that $200 consumer hot spot before the Blue-Ray, this could still be a problem for Sony with winning the HD warz IF, (and this is a big IF), Attach rates for Blue-ray vs HD-DVD do not change much.

This will especially be dangourouse when Toshiba release their Laptop with HD-DVD, Projected to sell through more then 10,000,000 units over the next year... what will happen then? By that stage, there might be 12 - 15 million Potential blue-ray players and a tad over 10.5 million Potential HD-DVD player setups. (This is if Neither Blue-Ray or HD-DVD reach the $200 sweet spot).

The argument in this article posted above is that because Sony is producing their blue-ray player for the PS3, it will lower in price faster... but they ignore the fact that Toshiba are producing HD-DVD drives which will also lower prices substantially.

Oh well.... I can see this War going on for a little while longer then people expect...

By this time next year we will know for sure which Format will win. At the moment to me however... I think the PS3 has the edge. But that could chage very easily.

It all depends on which company can get to the magic $200 price point AS WELL as have a fantastic attach rach with their hardware... At the moment the attach rate goes to HD-DVD hands down. Will that continue, It's hard to say.

I don't see HDDVD in Toshiba Laptops as being any major issue to Blu-Ray.  Who in their right mind would watch a HD video on their laptop and if they even can link it up to an LCD or Plasma, who is gonna do that.  Whereas the PS3 will be permanently linked to the house TV.

The big problem from HDDVD is the studio support or lack of it.  When Sony bring out their big guns later this year...ie. Spiderman 3 etc...this will persuade more people over to BR than HDDVD.

Talking about attach rates.  I think you will find that most of the PS3 owners probably don't even own a BR movie.  It will be mostly the independant BR players that will have a high attach rate and not the PS3 owners.

After reading the Reeves interview i think Sony strategy right now is only for the summer .They are dropping the price in USA while there are 60Gb units and offer the 80Gb pack and in Europe they are offering the Starter pack .Then by september most 60Gb units will be sold in US and the Starter pack effect passed in Europe and they will decide what to do .Probably they will then drop the price at the same time they start the launch of games as Heavenly Sword ,Ratchet ,Uncharted ,Eye of Judgement ,Singstar and all the 3rd party stuff .

Its a quite good strategy .

I think I agree with you too. In regards to Toshiba Laptops. BUT HD-DVD in computers vs HD-DVD in players is much greater... especially if HD-DVD recorders come out on top and well under price of Blue-ray recorders in computers. But I still don't see there being a viable leader until this time next year.

It all really comes down the consumer price hot spot and if one can get a heads up on the other for a decent streatch, then that's where it's gonna count.

ATM, Both formats have the potential to get there at the same time(ish) (Something that the article above seems to ignore, hence why I pointed it out), but to be honest, I have no idea how fast each one can cut cost so it all really depends on if one can be faster at price cutting then the other.

Your the one that said that PS3 owners aren't buying Blue-ray movies and it's mainly the Blue-ray player crowd.... Not good for Sony if their push for PS3 to be a blue-ray player is not actually making blue-ray movie sales.

I however believe that PS3 / blue-ray player owners are both purchasing movies. It's just not that many.

I still don't think a handfull of big hitter movies are gonna make a huge difference. It will all come down to a larger selection of decent movies that people want... not nessisarily Big Guns but still decent non the less.

If the format of blue ray has been decided, then why are their hardly a great amount of movies coming out for it still. (Substantially more then HD-DVD that is). Like I said, this is going to go on into mid next year berfore we see and leader imerge. And as I said before, I think the PS3 and Blue-ray has the edge.

Blu-ray in Playstation 3 will probably be a waste in the end, because neither format will probably really take off with mass market. Just nobody cares.

Also, BD standalone players are selling like ass, who wants to keep manufacturing BD players MORE EXPENSiVE than the Playstation 3? And the Playstation 3 buyer is a specific demographic and not a cinemaphile, probably resulting in UMD-esque sales.

Basically I think they might win the small potatoes and possibly they've sacrificed the console war.

PS3 and BlueRay are, no, IS the big bet than Sony started last year.

They knew that PS3 will sell because of the name, just because of this, because people believe in Sony.
They knew too that BR was absolutely not in good position agaisnt the HD DVD and was going to slowly lose the HD market.
They decided to make a huge bet :

They put BR on PS3 to push BR sales EXPECTING that PS3 sales will not be so much affected by Higher Price du to BR.

They succeed to sell some PS3 and so some BR player, they succeed to really increase BR userbase, some shop stop sell HD DVD, more movie are released on BR.
BUT
PS3 suffer from her higher price that mainly limit the sales to hardcore gamers.

This is a BET, this is The Boss... euh ... The Bet!
And yes if they succeed to kill HD DVD and DVD (will be harder lol), they will get a lot of money.

I havent purchased a single BR movie .But ,I dont have a HDTV ,so theres no sense buying those right now .Once I have a HDTV (around endyear )then all the movies I buy will be in BR ....