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Blu-ray Sony's Downfall?

It isn't cheap to produce a console that plays Blu-ray discs. Sony's PS3 costs more than $800 to produce, with cosnumers charged $600 for the new system. That's $200 more than PS3's nearest competitor, Microsoft's Xbox 360. Sony is banking on consumers' desire for the new Blu-ray player to overcome concerns over the hefty price tag. That could prove to be a dangerous gamble on Sony's part.

Yankee Group analyst Michael Goodman told Reuters that "Blu-ray is adding $150 to $200 to the [cost of PS3]. They've created something that is not for today's market. It's not a market driver, it's only driving the price higher."

Trend-watcher Cymfony surveyed 18,000 blog posts and message boards and discovered that positive Internet discussions about HD-DVD were 46% higher than for Blu-ray. "Negative Blu-ray conversation indicated a lack of consumer trust in Sony, as well as gamer displeasure with selling Blu-ray in association with PlayStation 3," Cymphony's Jim Nail told Reuters.

Sony has displayed no public concerns about Blu-ray. Many people bought the PS2 specifically for its DVD playback capabilities, so it is possible the PS3 will see great success if consumers choose Blu-ray over HD-DVD.

"The likelihood of people using PS3s as DVD players is significant, particularly when you're talking about millions of consoles Sony expects to sell," Andy Parsons, a spokesman for the Blu-ray Disc Association said. "Blu-ray's here to stay."

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FKN Unbelievable7099d ago (Edited 7099d ago )

Xbox 360 Is. They was'nt ready for it. they got caught offguard.They though MS was Going to lay down after the original Xbox but they did'nt. It was Just a first round Knockdown not a knockout. IF i was Sonee i Would Just stay down on this one. No Sense getting you @ss Pounded out 12 straight Rounds if you know you ain't ready. Might as Well take a dive and Blame it on FOOL-RAY. Sonee Forgot how it was to hungry and maybe the feeling would come back around on the next system by then MS would be the Dominant force with a big @ss lead like sonee was till whomever knock them off which i high doubt.

MicroGamer7098d ago

it can't take all the credit for knocking Sony out this round. If Sony had gone with DVD-9, they likely could have launched in the Spring like they originally intended with good production numbers and been price competitive with the 360 and made a real fight of it. Blu Ray caused their launch to be delayed and understocked and made the consoles too expensive to be competitive. There will be some nice games for PS3 and a lot of movies released exclusively on Blu Ray, but there just aren't enough units out there now to matter, and I don't think there will be in time for Blu Ray/PS3 to overtake HD-DVD/360. It is going to take 2-3 years for PS3 to reach a price point where it starts to really sell in large numbers, unless Sony decides to bite the bullet and make their loss per unit even bigger just to get them out there, but at the same time, Nintendo and Microsoft will also be lowering their prices to keep Sony the most expensive game system out there. Prices on HD-DVD players will drop faster than Blu Ray players, as well, because they are selling faster, and the more you sell, the cheaper it is to make more because of larger volume pricing on components and assembly lines running at full capacity instead of below capacity are more efficient. Sony is backed into a corner and I don't see them coming out of it with all the other problems they are having both financially, and in terms of public perception of the company and it's motives. Microsoft has taken great strides in recent years to improve their public image while Sony's image has gotten worse and worse. Microsoft still has a lot of work to do, too, but at least they are showing some signs of improvement.

dfb19777099d ago

So the hardcore gamers will buy it regardless and some wealthier families will buy into the Media Centre hype of it. The only problem I foresee with this format war is that both sides seemed to of under estimated the progress of technology. We've (UK) been able to get broadband TV services for quite a while now and other service providers are entering the market and pushing the technology further and at a very quick rate. We have the video market place and once the studio's have sorted the legal implications I think we will have widespread movie download services very very soon. I admit this will be to a smaller market than maybe physical DVD sales can get to but it is definately the future and will be here sooner than either the HD and Blu-Ray backers seem to think. I think the money would of been better spent developing this technology rather than HD DVD and Blu-Ray. As with music downloads the technology is going to force the hand of movie world.

Bhai7099d ago

...how much effort the media is putting into getting up such a news and publishing it...Hah ! even if blu-ray looses, PS3 will come to DVDs that's all, they will always have the choice...unlike 360, but PS3 will always stay ahead with HDD, motion control, full backward-compatibility and you know most outstanding exclusive titles...such news are now LAME-square !!! HAHAHA !

dfb19777099d ago

what do you mean if Blu Ray fails the PS3 will come to DVD, they always have the choice?, Xbox 360 plays DVD's

darx7099d ago

But what about the suckers who paid the full $600+ for their system. That does not seem fair too me. I don't care though I have my 360.

FKN Unbelievable7099d ago

" but PS3 will always stay ahead with HDD, motion control, full backward-compatibility and you know most outstanding exclusive titles...such news are now LAME-square !!! HAHAHA ! "

Quarintine The Topic. He's here and he's bringing that terrible poison they call Denial in our atmosphere.

richie007bond7098d ago

If i have said it once ive said it a thousand times,if and when i get myself a PS3 it will be for GAMES ONLY and i repeat GAMES ONLY i will not buy BETA RAY movies not ever am not interested in a shoved in my face format!!!!!!! SONY are you listening.Sony have pissed me off big time with their sheer arragance and their blatant disregard for consumers,sony only care about forcing a format regardless of what it costs in the end,thinking people will still buy it just cause its SONY not this time sony its a whole new ball game this time around

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60°

Final Fantasy X 25th Anniversary Website Launches With New Nomura Artwork and Merchandise

Square Enix launches Final Fantasy X 25th anniversary site, revealing new Nomura art, books, music releases, and merchandise.

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twistedvoxel.com
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Community17d ago
-Foxtrot17d ago

Look I know VIII has its issues and all that but how on earth can the do big anniversary events with new artwork and merchandise for VII, IX and X yet VIII got sweet f*** all.

They could have given it something during its 25th anniversary yet all it got was a single Happy Anniversary post on their social media.

solideagle16d ago

they should know that we are OG fans of VIII as it sold truckload as well. not as much as VII or X. I personally didn't like IX but X and VI are my personal fav.

Shadow Hearts 2 covenant is another game I love. I hope one day someone can make remake, I would be delighted

Relientk7716d ago

Final Fantasy VIII is great and you are always the first to defend it in the comments

40°

15 Years Ago, Mortal Kombat (2011) Saved Gaming’s Biggest Fighting Franchise

A brutal reset, a smarter story, and a return to what made it great—Mortal Kombat (2011) revived the series.

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fortressofsolitude.co.za
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Community24d ago
italiangamer25d ago

"Gaming’s Biggest Fighting Franchise"

Press X to (seriously) doubt.

DarXyde23d ago

Underrated comment. I used to hate that game so much that any time my siblings asked me to play it, I just picked Hom and shut myself down mid-match.

Soy24d ago

And then MK1 killed it again.

DivineHand12523d ago (Edited 23d ago )

15 years went by so fast. I remember playing through the story mode at launch.

90°

PlayStation legend Shuhei Yoshida says Jim Ryan fired him because he didn't listen to him

Why did Sony push Shuhei Yoshida out of his role leading PlayStation's first-party games? He'd overseen some huge successes. Well, apparently, he didn't listen.

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eurogamer.net
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Relientk7725d ago

Yeah I can see that for sure. Shuhei Yoshida should have been in charge not Jim Ryan.

Cacabunga25d ago

It should be free highway for him now.. but Sony are too stupid to see this, especially that moron Hulst

S2Killinit24d ago (Edited 24d ago )

Wtf why all that anger. PlayStation is dominating on every level. Besides I think there is a little more to hiring a CEO than just who is available. Its not like its a athlete your team wants to buy.

neutralgamer199224d ago

S2Killinit

live service failures, chasing trends, closing studios. yes dominating

Cacabunga24d ago

Sony is Dominating because competition is not existing. Compared to previous gens this is the poorest in terms of software offerings.

Last gen we got Uncharted 4 Lost Legacy and TLOU2 from ND alone.

This is so far a remasters gen, with no competition to lift up the quality

1nsomniac24d ago (Edited 24d ago )

..."PlayStation is dominating on every level"....

...Really???

PlayStation are soon heading into a new generation in the not to distant future. They currently have the worst customer satisfaction they've ever sustained as a company. The company is heading for a huge crash while at the same time they'll need to be planning how they are going to try and win back that favour and the build up to their new releases.

Yes financially they're winning but they're going to have to ride out this complete public corporate disaster. No one has faith in the company or the product anymore. They've damaged their public image so much this generation. Greed can kill anyone.

medman24d ago

Hulst is a disaster......

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blacktiger24d ago

He would've done the same thing and fire Jim Ryan and Shuhei would be the villain. Why?
Because Elite creates the narrative and distraction for gamers, users and citizens.

Outside_ofthe_Box25d ago

More confirmation that Jim Ryan is the culprit for what has happened to Sony. Hulst needs to go too. What sucks is that a lot of the good top heads at Sony are no longer there. I wish that guys that were forced out prematurely by Dumbo Jimbo like Shuhei and Layden came back.

robtion24d ago

Yep. Yoshida was responsible for bringing one of the best games of this generation to playstation (Stellar Blade). He is an actual gamer and is in touch with what gamers want (creative, fun games, not GaaS and agenda pushing). He also seems like a genuinely nice guy if you watch some interviews. Of course they got rid of him.

darthv7225d ago

Makes you wonder if MS even thought about hiring him after Phil and Sarah were leaving. He certainly couldn't make their situation any worse.

Agent7525d ago

Microflop. After Windows XP and Xbox 360, it all went floppy.

S2Killinit24d ago

Floppy 😆
No pun intended

badz14925d ago

Yoshida for President! Jim Ryan was and always be a hack! Sony should get Shu back

Lightning7725d ago

All the gamer/consumer lead heads are gone across PS and Xbox. shuhei gone phil's gone (questionable) but gone. The future of gaming is somewhat uncertain across the board.

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