Does the Success of Blu-Ray Rest on the PS3?
Posted by Sean Fallon on January 11, 2006
Filed Under Gaming | Stumble This
Once again, rumors are spreading across the internet about the expected price of the PS3. Initially, the word on the street was that the console would be released for $300-$400 - but that figure was refuted by Sony.
Today, CNN is reporting that the PS3 may go for $500.
Keep in mind that the first gen Blu-Ray player announced at CES 2006 is going to be released in May with a price tag of $1800. The first gen HD DVD player, on the other hand, will be released in March with a price tag of $499 and $799 for the basic and high end models respectively. Obviously, the PS3 is not going to cost $1800, and I believe that the vast difference in price alone will give HD DVD the edge in the long run.
That having been said, the PS3 is competing on two fronts - one is against Microsoft and the XBox 360 price point of $399 and the other is against HD DVD at $499 / $799. The announcement that Microsoft will be adding an external HD DVD drive also figures promently in this scenario. No pricing information on the drive has been released yet - but I seriously doubt that it would cost more than the console itself. Therefore, it is logical to assume that Sony would have to release the PS3 at a price somewhere between $500 and $700 in order to compete on both levels.
Whether or not consumers are willing to spend $700 for a gaming console aside - when you add on the outrageous $1800 price tag of the standalone Blu-Ray, it is safe to assume that the vast majority of consumers who will adopt Blu-Ray technology will do it via the PS3. In fact, I envision a large segment of consumers purchasing the PS3 for the Blu-Ray player alone.
The bottom line here is that Sony will have to price the PS3 agressively if it wants to fend off both HD DVD and Microsoft. Even if the games are fantastic and the Blu-Ray player surpasses HD DVD in quality, price will always loom large. Plus, Sony can’t afford to lose this battle - who would want a PS3 with the losing DVD format drive built into the console?
Ultimately, Sony’s ability to get the PS3 into living rooms will determine the success of the Blu-Ray format - not stand alone devices.
Posted by Sean
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5 Responses to “Does the Success of Blu-Ray Rest on the PS3?”
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if the ps3 goes, blu-ray is doomed.
http://m3mnoch.wordpress.com/2006/01/06/the-blu-ray-of-damocles/
for all the exact reasons you think it’s its savior. channel partners are a bitch.
m3mnoch.
[...] This leads to two issues. The first is that it is this extra development is going to take more time. The last thing the backers of Blu Ray are looking for is to give HD DVD a long period to get itself established. The second issue is that this delay may very well affect the launch of the PlayStation 3 as well. [...]
[...] Seriously, if this is true - how much will this thing cost? Rumors have been all over the place with regard to PS3 pricing, but it seems that all of the functionality Sony is packing into the product would make it far too expensive for the average consumer. [...]
[...] In my opinion, there is no freakin’ way that Sony can sell this thing for a price above $600 and hope to compete. My guess is that they are viewing the PS3 as a launching platform for Blu-ray and will take a big loss on the console in order to get the player into as many living rooms as possible. Let’s face it, Sony stands to gain much more revenue through Blu-ray than it would through the PS3 - but if they lose the format war to HD DVD they are in major trouble. [...]
[...] I’ve said it before and I’ll say it again - the PS3 had better be reasonably priced, otherwise HD-DVD may win the format war. This would be catastrophic for the PS3 which is stuck with it’s internal Blu-ray drive. [...]