Sony was smart when they decided to put the Blu-Ray media in their PS3. This in affect forced Playstation fans to not only purchase a next-gen game console, but also a HD Blu-Ray player as well. With the PS3 slightly less then new stand-alone Blu-Ray players, many consumers who have been interested in a Blu-Ray player have been buying the PS3. The problem now is, many people who have stuck with the DVD format has found an even cheaper solution. They are upgrading their DVD players to upcoversion DVD players, which convert regular DVD's into 1080p resolution. These new DVD Players are even cheaper then the PS3 and can be bought for $200 or less. What's more, these upconversion DVD players are improving and the quality of the picture isn't that far off from what Blu-Ray has to offer. For consumers, this is a win-win situation. 1) They don't have to get rid of their DVD collection to convert it to Blu-Ray movie. Lot of money saved there. 2) They can get the upconversion DVD player for a lot less then a PS3 or Blu-Ray player. So is Blu-Ray already dead by consumers standards? What about digitial distribution? If that takes off as well, will Blu-Ray sales start to fall? Here is the article.
http://www.gamedaily.com/articles/news/bluray-market-too-reliant-on-the-playstation-3/?biz=1
*******************************************************
ABI Research notes that the Blu-ray market is "heavily tilted" towards the PS3, and while that may be good for Sony's console, it's not so good for the overall Blu-ray market.
Posted by James Brightman on Wednesday, April 23, 2008
Sony's Blu-ray format finally triumphed over HD DVD earlier this year, but a victory dance may be a bit premature according to ABI Research. "Blu-ray cannot rest on its laurels. A bright future for high-definition DVD is not a foregone conclusion," the firm said.
Indeed, the argument from many pundits has been that the winner of the Blu-ray vs. HD DVD battle would ultimately gain little as digital distribution slowly takes over for DVD. In the meantime, DVD users see little reason to upgrade to Blu-ray it seems.
"We are starting to see an increase in the number of DVD players with built-in upconverters, and the video processing is getting better with each new generation," noted ABI principal analyst Steve Wilson. "Today about 35% of all DVD players sold include upconversion. ABI Research expects that figure to climb to about 60% by 2013."
The other problem, according to ABI, is that the Blu-ray market itself is "heavily tilted" toward's the PS3. The market for standalone Blu-ray players has not been very encouraging, ABI said. "The studios better hope that people are playing movies on their PlayStations. Otherwise there's very little installed base," Wilson explained. "In 2008 about 85% of the Blu-ray players in the market will be found in PS3s; the dedicated consumer electronics and PC-based types of Blu-ray players won't catch up in terms of market share until about 2013."
In an effort to spread Blu-ray beyond PS3, optical disc manufacturers are lowering prices and the PC manufacturers are starting to offer lower-cost configurations, but it may not matter, Wilson said: "If you're only going to spend $500-600 on a PC, are you really going to spend 40% more for a built-in Blu-ray player?"
In order for Blu-ray adoption to take off, the prices on standalone players have to come down, but so far the manufacturers have kept them fairly high. "The studios had hoped to have settled the war," Wilson concluded, "but I think they're going to be disappointed when they don't see the volumes of players going up they way they would have liked."
Log in to comment