Wal-Mart Begins Massive Push For HD DVD
Several readers sent us word of Wal-Mart's ordering 2 million HD DVD players from China. Hans V wrote, "My kids work at Wal-Mart and the manager there has been talking about this. HD-DVD's are selling like mad there so I hear." Another reader sent us a few links in Chinese and summarized them this way: "The first batches of these blue-laser HD DVD players are to land sometime in 2007, with complete fulfillment of the order [from Fuh Yuan] in 2008. The deal could be worth up to $300 million US, which translates to $150 per player. If so, by the time Christmas 2007 rolls around, Wal-Mart could be selling these for less than $200 retail, although some speculate that the initial manufacturer suggested retail pricing might be in the ballpark of $299. Currently the cheapest high-definition player is a Toshiba HD DVD with an MSRP of $399." By comparison Blu-Ray players, manufactured in Japan, are not expected to drop below $1000 until next year. The International Herald Tribune writes about the risk Toshiba is taking by bringing in Chinese manufacturers to trump Sony in the format war.
Will the person who picked HD-DVD in April 2007 for the next gen DVD format pool, please step forward to collect their winnings. I don't think that there is any chance that Sony and friends could over come this.
The force that blew the Big Bang continues to accelerate.
The International Herald Tribune "writes"? How about "wrote, a year and a half ago"?
What will Wal-Mart do if one of there cheap and big seller players get blacklisted?
Ii would suck to be working there on that day.
I mean, if I can find it doing a 30 second search over at Sony, why can't the author, rather than implying that Blu-Ray players will be $1000 until 2008. The Sony BDP-S300 is due to be released in Summer 2007.
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Here:
http://www.sonystyle.com/is-bin/INTERSHOP.enfinit
You were mistaken. Which is odd, since memory shouldn't be a problem for you
So, you're saying that the company that created Betamax, ATRAC encoding, the S-Link protocol, Minidisc players, Super-AudioCDs, Memory Sticks and Universal Media Discs might actually lose a format war?
Preposterous!
Mike Hoye
Of course, the "HD" in HD Radio doesn't stand for "high defintion" -- it stands for "hybrid digital," meaning that it co-exists with standard analog transmissions in the same channel. iBiquity is taking advtange of the fact that many consumers assume the HD prefix means "high definition," when there's no requirement for the digital transmissions to sound any better (especially if they use the bandwidth for additional subchannels).
In February 2009, the FCC of the United States cuts off analog television broadcast, and Americans will make a run on the big box stores to buy spanking new televisions to watch the NCAA men's basketball tournament on. How many of those 3+ million PS3s will connected to HDTVs by the end of March 2009?
What do you think the odds are that the type of person who isn't willing to spend the money on cable or satellite TV is going to spend $500+ on an HDTV when they could instead spend $50 on a converter box? Don't forget the government subsidy on a converter box, making the cost as low as $10.
Also, how much of an intersection do you really see between the set of people with old TVs that don't spend any money on television service and the set of people who are early adopters for the PS3 ?
So let me get this straight -- a deal that Walmart hasn't admitted to, with a format that may or not be HD-DVD (because it could be Blu-Ray given translation problems), with players that won't come out till 2008, will absolutely win the format war for HD-DVD, because no there is no reason for anyone to not buy HD-DVD now (at the currently higher prices) because they promise to win the war because these (without a doubt according to HD-DVD fanboys) are on the way. The same way they promised to win because HD-DVD's early to market strategy would give them an "Unbeatable" lead. And how "All" the studios would support HD-DVD because of the lower replication costs.
Unless the studios change alignments and go neutral by Christmas it is all over for HD-DVD. Period. I am dubious anyone can make an HD player for 50 dollars (say, how well does "Children of Men" play for you on your XBox 360?). Maybe the mechanism, but it takes a lot of horsepower to do all the modern codecs at full HD and with the DRM overhead.
I suspect this will all turn out to be a huge misunderstanding that is blown all out of proportion by the HD-DVD camp looking for any good news to hang their hats on after having gotten beaten badly 4 months in a row. Children of Men is out and Matrix preorder has also come and gone. HD-DVD doesn't have any more ammo in the content pipeline to compete with the big titles coming Blu-Ray's way in the next few months.
If you include PS3 players Blu-Ray sells more players every month than HD-DVD has sold in a full Year.
Having been to China, they call DVD9 HD-DVD on the street and on the packaging. I suspect we are talking a conventional DVD player that scales conventional DVD to HD resolution. This could definitely be produced for $50 dollars or less. I do not believe they can make $50 HD-DVD players that actually work. Remember this stuff has to have HDMI for God's sake. If it were possible to do the processing, they'd still probably still have to skimp by piping out component only and hope the Down Rez flag never gets set on future HD-DVD discs.
Blu-Ray also has two additional layers of DRM (and yes I know how much slashdotters all hate DRM) and these will be used for the first time soon. Since the AACS is now completely compromised, the studios will really be watching to see how well Blu-Ray's additional layers hold up. If they last even a few months, the studios will offer up HD-DVD on the altar as a sacrifice to the DRM gods.
It's not all about how cheap the players are. People that can afford a decent big HDTV (and it really does need to be big to see the BIG difference) can afford a $500 Blu-Ray players (and yes they exist now, pay no attention to the "$1000" player FUD, hell buy a PS3 for $600) and will care more about how many movies are available. Sure HD-DVD will be 100-200 dollars cheaper this Christmas, but Blu-Ray will have the movies and will eventually be considered a must buy item for good HDTVs. People that don't have HDTV or are satisfied with DVD don't need either.
Letter To Iran
It's more than just the 30 cents worth of plastic, it's all the logistics involved in producing two separate discs -- so you're effectively doubling that supply chain -- and packing them together, keeping them straight (don't want to put two copies of disc 1 in there, don't want to ship any with just one disc, etc.) -- not to mention adding additional weight to each package that has to be taken into account during shipping and transport.
I'll bet that the cost of manufacturing a 2-disc set is significantly higher than producing a single-sided one; personally, I'd rather screw the artwork on the discs and save the money. They're just buckets for bits anyway.
"Ladies and gentlemen, my killbot features Lotus Notes and a machine gun. It is the finest available."