Originally Posted by thebland
Volume cannot be matched. 1 million PS3s in 2 months and there are really no games worth buying. That number will continue to climb as more games and more BD movies hit the market.
Since you are from Detroit, this analogy will probably resonate with you as well. Sometimes volume does not solve the problem, but is the problem. The most recent example is Ford. Ford was making and selling millions of cars, these cars were not selling so they were reducing prices and offering incentives to move these cars. In the end they ended up losing appox $2,000 per car and multiplied by their tens of millions of vehicles sold it ended up losing the company around $16 B dollars.
That is really the same problem that Sony has. To sell their BD format, they are hoping to sell tens of millions of units of a console on which they are losing $200-$300 per unit (if not more). So, volume does not solve their problem.
So, it would be safe to assume that the HD DVD side is well aware of this. Toshiba did a smart thing and ended their subsidized A-1 with the A-2 after less than 70K units sold. All they have to do is hold on until the whole BD venture runs out of cash. Dumping (selling below cost) only works when you can subsidize one market and charge monopolistic price from another. In the case of BD this is not even remotely close. Looks like each market is more subsidized than the other!!!!
Also, someone said something about percentages. First, percentages by themselves are misleading when it is not accompanied by the actual units. So, I can win an election with 100% of all votes with one voter and win an election with 51% of the vote with 100M voters. I would not claim that the person winning with 100% vote is statistically more popular than his opponent. Since, I cannot extrapolate the results from 1 voter to 1 million. In a nutshell for statistical analysis to make sense you need a minimum representative sample size.
When sites like dvdempire says that format x has 60% of weekly sales, it means almost nothing in the overall scheme unless we know the units that the 60% comprise. The only reason we seem to pay more attention to Amazon is because as a well known online retailer we assume that it represents a sizable market for the product.
Looking at just Amazon it isn't obvious that BD is pulling away from HD DVD - yet. To me it looks like BD and HD DVD are very close when it comes to overall sales. However, if you factor in that BD needed 10 times as many highly subsidized players to achieve this and a massive announcement of titles, it can't be all good.
...and I am not even factoring in that 2-3 of the top 10 HD DVD titles, which includes some of the most recent releases are out of stock.
remember to examine and analyse and things may not be what they first appear to be....