Sony's got the blues
Subject: General Tech | December 8, 2006 - 04:41 PM | Jeremy Hellstrom
Blu-Ray isn't doing so well. Sony's new format seems to have reminded people of previous failed attempts by the company to introduce new formats, and they aren't buying it. Add to that Microsoft and HP's backing of HD DVD, dual sided/dual format DVDs and a cheaper price, and it isn't looking good for Sony. Digital Trends has gathered more information into an article.
"The basis for the prediction, which did accurately point out that Sony's win here might actually cost them more
than a loss, was the PS3 and the forecast volumes for that product. Back in August of 2005 we did know that HD
DVD, which used DVD production technology, would be easier to bring to market but it simply did not seem
reasonable that Sony would put their PlayStation franchise at risk for anything but a technology they were
absolutely certain they could bring to market on time. That turned out to be incorrect. The problems with Blu-Ray
have created extreme cost and execution problems for Sony and now their premier division (instead of being the
profit center for Sony) is predicting they will take a $1.5B loss next year largely resulting from this decision.
To put this in perspective, just think what would happen if Apple's iPod group, instead of generating massive
profit, suddenly dropped into massive loss. Now you can see why the Sony PlayStation division just changed out
their top executives. "
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