Sony Announces Cheaper Blu-Ray player

[markw]

http://www.comcast.net/news/index.jsp?cat=GENERAL&fn=/2007/02/26/596548.html

"Stan Glasgow, president of Sony Electronics, told reporters at a meeting here that by Christmas, prices for Blu-ray players should be down below $500.

Sony has previously complained that DVD players became a commodity product too soon, and that it was hard to make a profit in a market dominated by $50 units. Glasgow predicted that Blu-ray players would take the same route.

"Over time, I think it will be just like DVD," he said."

Well, what's good for Joe Sixpack may not be good for Sony but that's the global economy for ya..
..

[Groundbeef]

http://www.comcast.net/news/index.jsp?cat=GENERAL&fn=/2007/02/26/596548.html

"Stan Glasgow, president of Sony Electronics, told reporters at a meeting here that by Christmas, prices for Blu-ray players should be down below $500.

Sony has previously complained that DVD players became a commodity product too soon, and that it was hard to make a profit in a market dominated by $50 units. Glasgow predicted that Blu-ray players would take the same route.

"Over time, I think it will be just like DVD," he said."

Well, what's good for Joe Sixpack may not be good for Sony but that's the global economy for ya..
..

So they are either cutting the price of the PS3, or they are going to lose all the people that MAY have bought a PS3 simply for the "cheap" Blu-Ray player. (Not to imply that the PS3 is cheap, but less expensive than the current Blu-Ray players on the market.

Another brilliant move by Sony. They are dammed if they do, and damned if they don't.

[Smokey]

When price of Blu-ray players drop below $200, then come talk to me :D

As it was said before, HD players and movies probably will not dominate mass market unless their prices level drop to current standard DVD software and players. Sony is going in the right direction by dropping their price, and Toshiba is sure to follow with their own price drop for HD-DVD players.

[Groundbeef]

When price of Blu-ray players drop below $200, then come talk to me :D

As it was said before, HD players and movies probably will not dominate mass market unless their prices level drop to current standard DVD software and players. Sony is going in the right direction by dropping their price, and Toshiba is sure to follow with their own price drop for HD-DVD players.


I think that you are missing my point. I agree that lower prices are better for the consumer. In fact, if they get low enough, I will probably (gasp):eek: buy one for myself.

But for Sony, the relative price difference between the PS3 and the Blu-Ray player helped pull consumers into the PS3 market that probably WOULDN"T have bought a "game" machine. But once you get it, you might as well buy a game or 2, and some accessories...you get my point.

Once the price of the standalone player drops below the PS3, say goodbye to those that only want the movie aspect.

Thats the point. Sony is in a bit of a tough spot on this one, as the PS3 was a "stealth" way to get Blu-Ray into the American home (and fairly successfully, I would conceed).

So its not so much as an anti-sony post, I actually think this is a potential marketing issue as the PS3 was touted as a more cost efficient way to get a blu-ray player in your home.

[Woochifer]

http://www.comcast.net/news/index.jsp?cat=GENERAL&fn=/2007/02/26/596548.html

"Stan Glasgow, president of Sony Electronics, told reporters at a meeting here that by Christmas, prices for Blu-ray players should be down below $500.

Sony has previously complained that DVD players became a commodity product too soon, and that it was hard to make a profit in a market dominated by $50 units. Glasgow predicted that Blu-ray players would take the same route.

"Over time, I think it will be just like DVD," he said."

Well, what's good for Joe Sixpack may not be good for Sony but that's the global economy for ya..
..

Not surprising there. That price drop would basically follow the same downward price trajectory that accompanied the DVD format, which hit the $400 price point less than two years after launch. The whole point of developing these HD disc formats in the first place was to maintain some degree of profitability on the hardware side, so it will be interesting to see how long Blu-ray can support its price points.

On the HD-DVD side, Toshiba apparently has been licensing the format to off-brand manufaturers in China, which will create the same kind of downward pricing pressure as cheap bottomfeeding brands like Apex Digital did with the DVD. But, with most of the major studios holding firm in their support of Blu-ray, I'm not sure if it will similarly force Blu-ray manufacturers to follow suit.

Commodization of any media player is inevitable. The biggest hurdle for Blu-ray manufacturers will ultimately be how long they can sustain some profit margin before the players slide into the disposable price points. It took the DVD format less than 4 years before the bottom started to fall out.


So they are either cutting the price of the PS3, or they are going to lose all the people that MAY have bought a PS3 simply for the "cheap" Blu-Ray player. (Not to imply that the PS3 is cheap, but less expensive than the current Blu-Ray players on the market.

Another brilliant move by Sony. They are dammed if they do, and damned if they don't.

Did you actually think that Sony would indefinitely maintain a ridiculous pricing structure with standalone Blu-ray players costing twice as much as the PS3, which can do a lot more than just play HD movies? Blu-ray players should be priced below the PS3, and a more rational pricing structure was inevitable from the get-go.

Even with Blu-ray players priced at the $400 price point (which is where some market analysts have projected the year end price), the PS3 is still priced only $100 more. This would be not much different than when the PS2 was introduced at the $300 price point, and standalone DVD players typically cost $200-$250. Consumers with a home theater focus would basically be buying a video player, and getting the gaming capability tossed in for not much more.

And just because the pricing on Blu-ray players goes down, that does absolutely nothing to preclude people from buying the PS3 as a gaming console, which I thought was its primary function to begin with. Whether the PS3 sinks or swims will be determined by gamers (hardcore and casual alike), which is how it should be.


Once the price of the standalone player drops below the PS3, say goodbye to those that only want the movie aspect.

Thats the point. Sony is in a bit of a tough spot on this one, as the PS3 was a "stealth" way to get Blu-Ray into the American home (and fairly successfully, I would conceed).

But, in order for the PS3 to succeed, I don't think they need the movie-only buyers. They need the gamers a lot more, and in that respect, Sony's got a long way to go. But, as far as Blu-ray goes, the PS3 has already done its job. It solidified the studio support and vaulted Blu-ray into the lead, but forced the PS3 into giving up a lot of market share at the gaming end.

The PS3 might no longer have movie-only buyers once other Blu-ray players reach price parity, but I'm not so sure how many of them there were in the first place. And even with standalone Blu-ray players at the $400 price point, you'll still have consumers interested in the PS3 for both the gaming and HD disc viewing capabilities.

[kexodusc]

And even with standalone Blu-ray players at the $400 price point, you'll still have consumers interested in the PS3 for both the gaming and HD disc viewing capabilities.

I think this sums up the whole deal completely. We've been down this road with XBOX and DVD capability. Except this time I think there's less hassle to use the game system as a video player, and the benefits are greater.

Pretty sure Sony expected from Day 1 that BluRay players would be priced below PS3 very quickly, especially considering Sony isn't the only company making them. This is just things going according to plan, and yet another textbook case of early stages of a product's life cycle.

I think there's far less danger of the BluRay machine being as commoditized as quickly as DVD, and probably not to such great detriment. For one, there's far less people with compatible TV's, and that isn't likely to change anytime soon. Unless the DVD group quits releasing new titles or the studio's or retail chains abandon DVD, they're going to continue in some capacity for a few years yet. Less demand than DVD in the end. Not to mention the demand is currently split between 2 formats. DVD didn't really have that problem by the time prices started dropping.

It's worth repeating - DVD was revolutionary, and changed home video significantly, BluRay/HD-DVD are more evolutionary, and aren't likely to proceed through their life cycles as quickly. I suppose there's a chance HD media will catch like wildfire. The market underestimated it's appeal once before.

Maybe I'm wrong, but I sort of get the impression that HD video is still seen very much as a luxury item that most people don't have or are too concerned with right now. Those that are, don't mind paying the premiums. I think DVD became more of a "necessity" much quicker as VHS started to dry up in stores and at Blockbuster.

[nightflier]

When price of Blu-ray players drop below $200, then come talk to me...

Interestingly enough, the new formats have not had much of an impact on the price of standard DVD disks. I know there are discounts for older disks and Target/Costco/Wallmart usually has the lower-box-office-sales titles for less, but generally the new DVD releases are still about the same price they've been.

If the new formats really were having a pronounced impact on the market, I think DVD prices would be dropping faster. Right now, it looks more like when SACD and DVD-A were the new kids on the block - they were pretty much ignored and new CD prices stayed about the same. If the studios really wanted to let the public know that there's a new kid in town, they could drop regular DVD prices, so that the new formats could then sell for today's regular DVD prices.

I suppose that's wishful thinking...