Originally Posted by cambrian
That is the most irrational statement I have ever heard. DVD's were at similar prices to bluray went it first started. Look at its prices now.
Bluray is still at its infacy. If Sony wants the format to survive, it has to price blu-ray competitively (with SD-DVD's).
Why does Sony want Bd to survive and prosper? Because they will get royalty payments for the life of the format.
Why did Warner seemingly give up the potential royalties it was likely to get from HD DVD?
Because, more than likely they see several factors looming that point to these roylaties not amounting to very much in the long run
1) a shorter life span for HD optical media compared to any previous format going back to VHS
2) a fractured market for some time due to the format war means several studios would not be contributing to the royalties Warner would have been getting (likely Fox and Sony)
3) widespread consumer apathy will likely rendered even a unified HD format into a niche.
I think these three points made Warner selling out the best possible decision for the company...and believe me what they whored themselves out for dwarfed the $150 million that Paramount got.
Warner played the game just right and will profit from HDMs.
In the long run, Sony won't nearly as much...but it would have been worse had they lost Warner.