OUR NETWORK:TiVo Community Sling Community RoboCommunity My DigitalEntertainer MyOpenRouter MediaSmart Home See all... About UsAdvertiseContact Us

HD-DVD and Blu-Ray Not To Merge - War on the Horizon

Talks To Stop the Format War

It looks like the 2 camps just can't play nice. There had been talks between Blu-Ray advocates Sony & Matsushita and HD-DVD key player Toshiba to end the format war before it started - by introducing one standardized format for the next generation of optical discs.

Yeah, right...

Both Sides Take Up Arms

It was announced that the two seperate formats will blaze ahead, bringing yet another futile format war into existence. Consumers will either have to gamble that the format they choose will survive, or just wait until a format is declared the victor. I'm willing to bet that more people wait this time around, since everyone who owned a Beta payer remembers how awful it was to lose.

Sony might get lucky. Anyone who wants a Playstation 3 is going to have Blu-Ray capability, which means Blu-Ray will instantly have a leg up against HD-DVD. Too bad for Toshiba that neither Microsoft or Nintendo have opted to use HD-DVD in their upcoming video game consoles, XBOX 360 and Wii, which would have turned the tides on Sony... considering that the XBOX 360 is launching months ahead of Sony's PS3.

But, Sony could easily be wrong, too. Just because you have the ability to play a Blu-Ray movie in your PS3 doesn't mean everyone is going to go out and drop hard earned cash on movies that may not be playable on anything but a video game console.

The Losers

Obviously we, the consumers, will lose. But another loser in this game is the retailers, who have to carry multiple versions of the same product and suffer lost sales because nobody's buying. If a studio chooses, it could release the same movie to DVD, HD-DVD, and Blu-Ray, causing retailers to devote too much shelf space for a single product and wind up with millions of dollars in useless products in their hands when one of the formats keels.

Of course, lets not forget that redundant inventories means everything gets more expensive for retailers. I guess we'll all have to go back to paying 25 dollars (or more) per movie. Better yet, maybe they'll look back on LaserDisc's successful campaign and charge us all 70 dollars per disc... that'll work.

It may just be my opinion, but the manufacturers have all gone looney. The current DVD-Audio/SACD war may not have been detrimental to the market, since each format is a product that few are interested in (people want compressed music for iPods, not high-res music for stereos...unfortunately). However, everyone is salivating for movies in high-definition quality. All a format war will do is convince consumers like me to hold on to cash we're willing to spend, simply because we don't want buying a video player to be like placing a bet on the roulette wheel.

In fact, roulette really is the best example of the situation. The odds are that one of the proposed formats will win, and either HD-DVD(red) or Blu-Ray(black) will become the dominant format for the foreseeable future. But remember this manufacturers of the world, stepping on consumers to the point that they don't want to buy anything means the wheel stops on green, and both of you lose.

Place your bets...

Read more in: Video Playback / Recording Devices Home Console Gaming

Discussion:    Add a Comment | Comments 1-3 of 3 | Latest Comment

May 25, 2005 7:45 AM

So, predictions? My money's on Sony over Toshiba.

Also, keep in mind that one thing Matt didn't focus on was basic capitalism. Having them compete is *good* for the consumer, in that a better product is ultimately produced.

Yes, early adopters will end up selling the next generation of Laser Discs on ebay, but even before the release of the format, each of these companies is tearing its heart out to make their format as awesome as possible, knowing that the other is out there. To say nothing of the price war driving down costs.

Doesn't that bode *well* for the consumer?

"I'm just jazzed to be on the show, man."

May 25, 2005 12:00 PM

Having them compete to make a format is a good thing for consumers, but releasing two formats is bad.

Did the VHS/Beta war actually drive down costs? No.
Did it do anything beneficial for the consumer? No.
Could it even be said that multiple formats in the marketplace keep costs higher? Yes.

In certain categories, competeing technologies are not always a bad thing. Look at the current codec war for portable audio. Microsoft and Apple are both going nuts trying to improve their media players to capture the codec market. With the multiple benefits of WMA or AAC, the most common codec used is MP3. Why? Becuase it works on everything... it's a standard.

The online music store scene has the same problem. Buy a song on iTunes and you'll never play it on anything but an iPod or a computer. MSN music only works on a computer or one of their compatible players. Either way, you don't buy something that will work everywhere you want it to. Who loses? We, the consumers, do.

Back to the HD movie war. I predict that 2 opposing formats will not result in a price war which lowers prices. Why?

1. Fewer people are going to buy without a standard. Less sales means higher prices.
2. Production is decreased. Lower sales means less units produced, which means higher prices. Plus, it could be said that a manufacturer would sell 2 times as many units if there was only 1 format, given that sales between the 2 formats are initially equal.
3. Marketing budgets get inflated. Now we have to watch a marketing blitz from each side trying to convince us which one is better. Who ends up paying for that? We do.
4. Higher software prices. Lower production quantities means higher costs for retailers. Higher costs for retailers means even higher costs for us.

I could go on, but my point is clear. Jeff is absolutely correct that competition results in better products. It's a good thing that there are 2 ultimate, researched products that could come to market. I recommend that only 1 of them makes it. History has shown that opposing formats in anything other than video games (which is debateable) are not necessarily good for consumers.

Here are two occasions I can think of where format wars have occured, and the result:
Beta/VHS war - horrible for consumers. Prices stayed high until Beta died.
SACD/DVD-Audio - not good for consumers. Hardware prices are cheap, but the opposing formats have caused software prices to stay too high for acceptance. Thus, few studios release music to either format.

Here are some of the formats that did not launch as a war:
Cassette Tapes - Wildly Successful
CD Audio - Wildly Successful
DVD-Video - Wildly Successful (Divx did not count as an opposing format since the players still played DVD-Video discs)

So is this good for consumers? All-in-all, I say no.

Mind Over Matt'er - Technology musings, opinion, and more straight from TechLore's head geek.

September 7, 2005 11:34 AM

So I found this comment in an article today, and wondered if anyone thinks this is a bit overkill.

"On top of that, consumers should expect punishment for tinkering with their Blu-ray players, as many have done with current DVD players, for instance to remove regional coding. The new, Internet-connected and secure players will report any "hack" and the device can be disabled remotely."

I don't know if I like the thought of my DVD player reporting how I use it to any authority through the Internet. If this holds to be true, would this stop anyone from buying into the Blu-Ray format?

Mind Over Matt'er - Technology musings, opinion, and more straight from TechLore's head geek.

Discussion:    Add a Comment | Comments 1-3 of 3 | Latest Comment

You must login to discuss this item.

 
 

Please log in or register to participate in this community!

Log In

Remember

Not a member? Sign up!

Did you forget your password?

You can also log in using OpenID.

close this window
close this window