Originally Posted by Mark0
It's really simple.
It's truly not that simple...
Sony sells the PS3 at a loss. While this is part of their model, they expect to turn a profit on game sales, not movies. If this were the case, dont' you think Sony would heavily subsidize standalone players?
In the short term, they don't expect a profit at all, and where there most immediate concern is, is the format war. Pushing Blu-ray into the PS3 was a central part of this push, and it has ramifications across the entirety of Sony's BD strategy. Not only is there a player now on the market in volumes no other device can touch, but this same device (and its associated volumes) have driven Sony on the diode side to iron out their diode fabrication process in a manner that would have taken *much* much longer if not aided by the internal push generated by the PS3. The PS3 in turn suffered for its role in fast-forwarding the diode expertise, but it was a strategic risk taken.
Sony is unable to put out a subsidized standalone because unlike HD DVD, one of BD's present strengths is the coalition of CE manufacturers behind it. They are no doubt tolerent of the PS3 (to whatever extent that they are), because they understand that there is still a market among the high-end purchasers who will never consider a console as an option. They are able to compete and market as normal in this environment, as Sony competes with them in the expected fashion. Were Sony to subsidize a standalone, I think it would put the entire CE coalition at serious risk, as truly then there would be some resentment brewing.
If folks buy the PS3 for movies and not games, this will have a serious impact on Sony's model.
As I said, this isn't the typical console model this go-around. PS3 will serve a dual purpose in the short term - indeed, BD is probably viewed as the more important of the two at the moment - and as time goes on, and 'real' games are released, it will settle into a more typical console model. As soon as BD player standalones reach price parity with PS3, it's role in the BD vanguard will have been served.
Check the latest reports on the web. There's a strong recommendation to "sell" Sony stock.
I recommend all of my posts in the thread I am about to link to, but especially this one and the two posts that follow it:http://www.avsforum.com/avs-vb/showt...&&#post9642743
Originally Posted by Sean_O
I would have never pegged you as a marketing guy
Well that's because I'm also a technology guy.
My ever-present focus and passion...