Blu-ray Wins Format War, Loses At Retail

Michael Learmonth | May 1, 2008 11:18 AM

300.jpegWhat if someone won a big format war and consumers didn't care? That's what Sony (SNE) is facing in light of new Blu-ray player sales figures from NPD Group.

The firm says sales of Blu-ray players cratered 40% between January and February, and then rose a smidgen (2%) in March -- lousy numbers considering Bu-ray won the format war in February.

Even worse: actual sales numbers are so low, NPD isn't releasing them for fear of outing specific retailers.

This comes a week after an ABI Research study that said consumers can't tell the difference between Blu-ray and a standard DVD, especially those who use "upconverting" DVD players and don't have the highest-end TVs.

Cost of Blu-ray player: $300. Upconverting DVD: $70.

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27 Comments

Oh be patient! said:
So what to who wins the war of the format! Beta was superior to vhs in quality, but vhs was cheaper and marketed more effectively. Even though I was too young to care, I would speculate that vhs was cheaper in comparison.

If blue-ray can make the prices more competitive in the market, I am sure they will do well. Right now, though, the cost is too great to justify getting one for a lot of people. Most people are more worried about food or gas prices and probably don't care about a luxury item like a blue-ray player (though the PS3 definitely being the exception!) right now. There is even a noticeable cost difference with the movies. Remember when CDs first came out? Those records and tapes were not removed from the store shelves overnight.

Short term gain speculation is just stupid for consumer products. LCD & plasma TVs have been out for a long time, I personally waited for the price to be reasonable before I purchased one.
Fred Perkins said:
Oh be patient! fails to realize that we did have a cheaper (arguably better) format in HD-DVD.
Wei (URL) said:
Another Sony FAIL?! What a shocker.

Let's see here.

Beta
Mini Disc
Proprietary memory stick format and others listed here
http://dubiousquality.blogspot.com/2006/07/sony.html

I guess they just don't learn.
Jeff Bach (URL) said:
The longer Sony and others mess around with high prices and their inability to generate sales, the shorter their window of opportunity is going to be to sell through this last generation of physical media and players before the download market finally arrives.

I think the nascent download market remains years away from being significant. But still, each quarter of miserly sales and continued high prices is one less quarter for Blu-ray to take advantage of their current sweet spot in the marketplace.
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Quietwater Films

Elmo (URL) said:
Sony's magic flew away quite some time ago, once owners of that certain something ... cache. Now again, missing the sailing away Blu-ray boat. The early excitement/enthusiasm for high def, not building/piggybacking on standard DVD's universal everyday popularity.

Music/audio has been going DOWN in resolution, in the marketplace. The Windows operating system still sux, and soon enough movies will no longer be film based (many cinemas have already moved away from projection of optical prints). It's a wonder the whole world is not completely insane?
Brian said:
I've said this before if they really want to make blu-ray the number one format they need to make blu-ray releases the same price as their regular dvd counterpart. The average customer will not pay $30 for a blu-ray movie. It only cost me and my girlfriend $16.00 to see a movie in the theaters.

Until they bring the price for blu-ray under $20 no one is going to be in a rush to buy a blu-ray player.

Brian
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