superchunk said:
The flaw in your theory is that if the PS3 was significantly cheaper than other BR players it would sell on that merit alone. Thus, enabling Sony to drop the manufacturing costs of BR hardware and ensure BR wins the format war. Which means people really start buying BR disc.
With me so far.
Then people will want a better looking, smaller, better quality HD video player and will want to shift the PS3's to kid's rooms. So what will they buy now that they have a decent BR library? A stand alone BR player that is dirt cheap. Then all of the other hardware manufactures will rake in cash, especially if they are part of the BR group.
The BR group as it stands now all get a cut in the BR royalties, so if PS3 wins they all win. Also, if I am not mistaken, one of the reason's Sony was able to take a $200+ loss on each console was because the other BR partners and manufactures gave Sony $ to lessen the loss. |
Sonys Blu-Ray partners didn't offer Sony money for selling PS3 at a loss. Let's think for a moment they did, in that case they gave money to their competitor so that their competitor could outprice them (we could as well think that Sony pays Nintendo or M$ so that they could sell their own consoles with a smaller price than before and lessen Sonys sales) and lessened their own sales by doing that. But they have put money in the developement by funding new and cheaper ways to manufacture Blu-Ray hardware.
Everyone who owns rights to the Blu-Ray, makes money from every disc or piece of hardware sold, but those companies have a lot of employees (and in Japan firing them isn't as easy [cheap] as, for example, in any EU country or US). So, hardware manufacturers need to get their hardware manufactured and sold to keep their business running. Of course, PS3 has dramatically cut the manufacturing costs of Blu-Ray, but since standalone players are sold to a niche, even in comparision to PS3, manufacturers have to make more profit per unit to be profitable.
People will really start buying Blu-Ray discs when there are hundreds of millions (even one hundred million is enough) of BD-players, and that will take years. Until that the BD alliance manufacturers have to make money with hardware, if not, the only BD-player needed in this phase would be PS3.
Yes, they do want better looking, cheaper, better quality HD players (propably the reasons why HD-DVD sells better when not counting PS3) and move their PS3:s to kids rooms when they have kids (it's not the family people who buy PS3:s).
The reason why hardware manufacturers support BD is that they can make money with it. If they suddenly can't compete with their rivals, they have to manufacture something else. Also there is a risk for BD, if PS3 is practically the only BD player sold, Blu-Ray gets a "PS3" stamp and people will see Blu-Ray as PS3:s media (like UMD as PSP:s), giving HD-DVD a fair chance. So if HD-DVD still lives, when the next generation of consoles arrive, HD-DVD may get a fair boost (especially if they can put a cheap rewritable player in the market by then).