Thread: Seems I've been banned from the Blu-Ray forum here at SatelliteGuys

Diogen, I would like to shoot a few holes in your cost theory -- if you will allow --

First, Sony not only owns movie studios (that is more then one for those that are counting) but they also own multiple gaming studios (once again, more then one for those that are counting). Sony leveraged the cost of the PS3 against their movie and gaming studios. So a big movie or game ends up being put on BD and the PS3 gets Sony a nice cut to help leverage the loss on PS3 sales during its first two years out. So much so that now they are making money on PS3 sales.

Toshiba on the other hand did not have any thing to leverage their HD-DVD players with. They readily admited as early as Thanksgiving of '06 that they might have to drop prices to maintain their sales lead against BD when the PS3 was introduced. At that point they started losing money on every HD-DVD player sold and had no movie studio to help offset the loss. Hence when Toshiba finally pulled the plug they announced a $900 million dollar loss.

If Toshiba had not of pushed the prices to back door levels and kept the prices at a level where a profit -- even a small one-- could be made I believe other CE manufacturers would of jumped ship (many were looking hard, Samsung, LG and others). Toshiba would not of moved as many players as fast as they did but there would of been more players on the HD-DVD side and they would still be in the game and making money. In addtion, I keep reading (mainly from you Diogen and Vurbano), that the cost of pressing HD-DVD and formating was alot less then BD. It that was the case then Toshiba should of chose to lose money on the movies (which they would not of if the cost to produce was really that low) and they would have easily displaced BD in disc sales.

Bottom line is that nobody made money on HD-DVD and if nobody is making money -- who is going to sell the product? Retailers were not really making money because HD-DVD was taking up valuable frontage with low returns. This whole deal was done in for Toshiba by simple economics. They consistantly made the wrong choice time and time again -- while the BDA just stayed the course. You guys keep yelling about profit taking? In case you are not in business -- that is why someone goes into business -- to make a profit -- and as much profit as possible.

Maybe by Xmas of '09 BD players will be under the $200 range and movies will be down to a respectable $24.99 in the stores (already there in Walmart -- most titles are already at $24.99 with only new release at $29.99). Even with that there will be naysayers about the format -- which is okay. I am really enjoying my BD movies and I am sure there are many more consumers like me who are enjoying theirs. Sorry there are those of you who don't feel that way but that is okay too.

Originally Posted by JoeSp

First, Sony not only owns movie studios (that is more then one for those that are counting) but they also own multiple gaming studios (once again, more then one for those that are counting). Sony leveraged the cost of the PS3 against their movie and gaming studios. So a big movie or game ends up being put on BD and the PS3 gets Sony a nice cut to help leverage the loss on PS3 sales during its first two years out. So much so that now they are making money on PS3 sales.

Geez...
Why do you assume your readers are complete dumb asses, Joe?
The bolded conclusion does not follow out of your statements above.
You know it. I know it. WTF? How long can this stupidity go on?

Originally Posted by JoeSp

Hence when Toshiba finally pulled the plug they announced a $900 million dollar loss.

And? Did I question this?

Originally Posted by JoeSp

If Toshiba had not of pushed the prices to back door levels and kept the prices at a level where a profit -- even a small one-- could be made I believe other CE manufacturers would of jumped ship (many were looking hard, Samsung, LG and others).

Again... WTF? How do you know?

Originally Posted by JoeSp

It that was the case then Toshiba should of chose to lose money on the movies (which they would not of if the cost to produce was really that low) and they would have easily displaced BD in disc sales.

Instead of recommending Vurbano to look in the mirror, do it yourself. Toshiba is not a studio...

I had enough of you for a week...

Diogen.