How to win a format war.

Discussion in 'Blu-ray & DVD Players & Recorders' started by Darkstar_surfer, Aug 26, 2006.

  1. Darkstar_surfer

    Darkstar_surfer
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    If I were HD-DVD and wanted to win the format war I would start giving away HD players at cost. That way I would have millions of players in houses and with them all buying HD-DVD's I would quickly recoup my cost and start to make a huge profit. Since if we all only buy 100 disks then that is at a cost of £1,600. Since I guess most of you buy that many a year. Seems a no brainer to me.

    Well I can hope.:smashin:
     
  2. steve0

    steve0
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    Toshiba sell them at a loss allready
     
  3. Darkstar_surfer

    Darkstar_surfer
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    I don't think so. They are selling at cost plus some recuperation of some of their development cost. If they can push out SD-DVD players for £30 or less then they can sell HD-DVD players for less than £100.
     
  4. domtheone

    domtheone
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    I'd seriosly doubt that we'd see anywhere near £100 just yet.

    Though, if they were anything around £200 on import i'd probably be watching a HD film 2night instead of lowly DVD:D

    £4-500 is enough to make me think about it for a few months lol.
     
  5. Noggin1980

    Noggin1980
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    Other than a analyst firm making an uneducated guess there is nothing to back that up. Frankly I don't believe it in the slightest.
     
  6. Hairy

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    I think a lot of people will be waiting for the price to fall before buying.If both formats were available I think the price would drop quicker.
     
  7. Wasabi

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    If it is "isuppli" why would they make an uneducated guess?

    They have broken down all the components and priced them -
    http://www.eet.com/news/latest/showArticle.jhtml?articleID=189600999

    Now working at the investment desk for a global asset management firm, isuppli market reports are widely used among the electronics industry analysts.

    wasabi
     
  8. Rasczak

    Rasczak
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    Because they can have no idea on the pricing of the HD DVD-ROM drive used. They could be out by as much as £100 which alone turns there calculations upside down. They also have no knowledge whatsoever of any internal agreements between Intel and Toshiba for supply of the components - for all we know Toshiba got them at cost or less as Intel are part of the HD DVD camp.

    Based on the fact that RCA have released a variant at the same price, and that the Toshiba European models are priced competitively, I have no doubt that Toshiba aren't making a loss on their players.
     
  9. Rasczak

    Rasczak
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    Both formats are available now.
     
  10. Noggin1980

    Noggin1980
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    Exactly my thoughts Rasczak thanks.

    Especially Since Intel have a huge ammount of processors that took a huge drop in value when the core 2 duo launched. Intel are going to struggle to get rid of all the stock of their old chips so could very easily be selling them very cheaply to Toshiba particually as you say intel are a HD-DVD partner.

    Edit - and a quick google search turns up this

    Of Course the Australian manager probably isn't the best source of info in the company but its better than a guess from an analyst firm.
     
  11. Wasabi

    Wasabi
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    I understand your point, however, the fact is that Toshiba wants fund managers to invests/keep investing their billions in them (keeping share holders happy are key for any company), numbers if requested are always revealed in particular to fund managers or research analysts from the investment firms themselves, unless of course they deliberately hide them (which of course happens e.g. Enron), that is a mutual understanding and agreement between the two industries.

    I agree that most research firms doesn't have the importance or inside connections needed, however, isuppli is a respectable research firm.

    wasabi
     
  12. Nic Rhodes

    Nic Rhodes
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    Having had a poke around the internals myself, I don't think Toshiba will be making a fortune here but I do think they are making money.
     
  13. arfster

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    It's not that unreasonable. Remember you're not only talking about the cost of first generation HD-DVD, but it's also got a lot of expensive scaling/deinterlacing/processing tech in it. Look how expensive top end DVD players can be - the Tosh is in that market segment, it's not a budget player.
     
  14. Noggin1980

    Noggin1980
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    It didn't say it was unreasonable I just don't think there is any evidence that its the case yet I do feel their is evidence that it isn't the case.
     
  15. Oakleyspatz

    Oakleyspatz
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    Toshiba, in my opinion, have priced their HD players almost perfectly for a new format. Of course they cannot sell their new players for £100 as this will affect how the format is perceived and whether the average consumer will see it as an increase in quality from SD-DVD. People will not associate a £100 HD-DVD player as anything other than a gimmicky, cheapo, unreliable, low quality player (much like the way a £30 Taiwan DVD player you get in your local petrol station is perceived).
    Still today, even this bargain priced electronics market in which we live, people equate price with quality. What is the difference between a £100 pair of loudspeakers and a £1000 pair? Without ever hearing either, 99% of people would say the £1000 pair will sound better and are made better!!
    Toshiba want people to think they are paying for and getting quailty, yet still believe they are getting that quality at a bargain price. Sony pricing their players so high is just re-inforcing this belief in many minds. To my mind, Sony and their partners have priced their Blu-Ray players in the "maybe one day" kind of market for most consumers, yet delivered a standard of quality which would make most consumers say " I paid how much for this rubbish?"
    Toshiba have priced their's so consumers will think twice before buying a standard £500 DVD player when they can have a superb SD-DVD player as well as HD-DVD capabilities thrown in for free!!
    Toshiba are probably not making a huge profit on their initial batch of player sales, but they know that market saturation is more important than the fast buck.
    A lesson Sony may do well to learn from!
     
  16. Boink!

    Boink!
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    ... I'd get the Pr0n industry behind me.
     
  17. matthewl

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    1. I'd offer Microsoft as many incentives as necessary to put HDDVDRom drives in new XBoxes as standard. There are some arguments about whether console owners will buy any/many HD films, though not having HDDVDRom drives in a console seems a disadvantage.

    In a few years time, there will be a lot of Bluray equipped Sony playstations in peoples homes. If the XBox doesn't change, a minority will probably have the add-on HDDVDRom drive. I expect that marketing and research companies will include consoles when they calculate the number of deployed HDDVD and Bluray players. These statistics will probably influence film releases and those buying their first HD player as well.

    If this turns out to be the case, then console inclusion is needed just to remain in the 'war'.


    2. Regarding pricing, the use of Intel processors in Toshiba players suggests that some/all of the processing is performed in software. At some point, a big chip manufacturer will probably release a HiDef hardware solution that should make the player design much simpler. Hopefully, a number of chip manufacturers will do this which should help make the players cheaper.
     
  18. domtheone

    domtheone
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    This is true. Though, I thought they had plegded their backing to BR some time ago?

    Given how the BR camp seem to be :censored: things up though, it's a good chance for HD to steal a lead.
     
  19. Noggin1980

    Noggin1980
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    No, one studio (digital playgrounds was it?) went blu-ray (may be more by now), others have gone HD-DVD. In fact HD-DVD already has some porn out and Blu-ray doesn't.

    Frankly I don't think it matters though, there has been multiple discussions on the porn issue and the majority of us on this forum belive its almost irrelevant this time.
     

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