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Originally Posted by CrazyHorse Which makes it all the more baffling as to how the hell Blu-ray won this format war! One thing is for certain, the consumer had no real say in the outcome, despite what some press releases would have you believe. |
Not really...
What you say would be true IF the price Toshiba were marketing their players at represented the real price of the units. However, Toshiba were the only maker of HD-DVD only products (for everything, standalones, PC drives, Xbox addons, all used Toshiba drives) and were also the only HD-DVD company trying to aggressively increase market share. The way they did this was aggressive pricing on players. Ignoring the sell-off pricing, I don't think Toshiba were making money on the players, as evidenced by the share price rising when they announced their pull out. If HD-DVD was a profitable business for them, I doubt shareholders would have been quite so happy to see profit thrown away.
So, the prices people are used to for HD-DVD and the functionality provided, were artificially low in order to boost take-up. If it had worked then longer term Toshiba would have reaped the benefit from licensing revenue etc. However, the problem it also created was that whilst Toshiba were busy using price as the main weapon to increase share, no other manufacturer would make players as there was no profit in competing with Toshiba prices. Why would you buy say a Samsung HD-DVD player at a higher cost than the Toshiba for the same or less functionality? You wouldn't, nor would I.
We'll probably never know what real price the Toshiba players would have sold for to make money. Maybe the initial G2 prices were closest to the mark at I think it was £699 for the XE1 and £449 for the HD-E1. That pricing didn't last long though.
The sad fact is that £200 or thereabouts doesn't buy you much of a player if you want all the bells and whistles. I think this is why we are seeing such delays on BD player releases. The hangover if you like of Toshibas pricing is that people now expect a certain functionality at a certain price, and if BD manufacturers suddenly release a slew of players at twice the price there would be an outcry of rip-off... So the alternative is to wait until component prices drop to a point where they can deliver function at the expected price.
In the mean time we're stuck waiting...
That's my view of it anyway. Ironically I think if Toshiba had simply had the bottle to only undercut BD by say £100 on players initially, then they would still have won the functionality battle and they'd have left enough margin in the player price to allow other manufacturers to make players without making a loss on them... Then the consumer would have had a real choice. As it turned out, IMO Toshiba removed customer choice by pricing other manufacturers out of the HD-DVD market.