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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.

18 of 338 comments (clear)

  1. We have a winner! by rednip · · Score: 5, Insightful

    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.
    1. Re:We have a winner! by Anonymous+McCartneyf · · Score: 4, Insightful

      I didn't bet, but you're probably right.
      I saw an ad in Entertainment Weekly pushing the idea of discs that had DVDs on one side and HD-DVDs on the other. Anyone want to bet that studios supporting HD-DVD will soon issue all their new (non-BluRay) films in this format? Those discs will play in ordinary DVD players, and they will be already adapted to one HD format if the customer decides to upgrade to HD. Backward compatibility and possible lock-in: what a beautiful combo for a marketing department!

      --
      There is a fine line between recklessness and courage... -- Paul McCartney
    2. Re:We have a winner! by Gunslinger47 · · Score: 4, Insightful
      1. How many of those 3+ million PS3s are connected to HDTVs?
      2. 11+ million PSPs have been sold but people still don't care about UMD.
    3. Re:We have a winner! by Babbster · · Score: 4, Insightful

      Realistically, though, I don't think the price of the players matters much. What matters is the movies available. Blu-Ray has a lot more content industry support, and that's not changing.

      You're fooling yourself. Families often had multiple VHS players and now often have multiple DVD players. Even the hardcore AV folks are going to balk at spending $500+ per Blu-ray player after their first. Get a player under $200, though, and it looks far more attractive for the masses to replace a DVD player with an HD DVD player.

      No, the price of the player is absolutely critical and if Wal-Mart is selling HD DVD players for half or less the cost of the cheapest Blu-ray player, Blu-ray will be looking at a disaster. Blu-ray has had a good few months thanks to [dumb] people buying PS3s but Sony has, in essence, raised the price of the PS3 by $50 (by killing the unit that was $100 cheaper) and still doesn't have great games to sell that system. Even if they can get a $400-500 Blu-ray player on the market, people aren't going to pay a premium for it over an HD DVD player with the same capabilities, and the [non-Sony] studios will follow the installed base.

      Oh yeah, and if by "a lot more content industry support" you mean Sony and a couple other companies that haven't produced much, if any, Blu-ray content, then you're right. To me, it looks like the companies that have paid lip service to being on the Blu-ray bandwagon are still waiting to see how things shake out.
    4. Re:We have a winner! by Babbster · · Score: 4, Interesting

      I've got to jump in here along with the above poster. Blu-ray is no more proprietary than HD DVD. In fact, my only issue with Blu-ray is price. If Blu-ray was competitive in that area, I'd be more than happy to support it because it truly is superior in terms of data storage. However, since I consider price a "trump card," my support remains with Toshiba and company - I truly believe that price is the determining factor for mass acceptance, and Sony, et. al. show no signs of trying to compete there.

    5. Re:We have a winner! by brandond1976 · · Score: 5, Interesting

      Yes, but you forgot to mention other facts about some of those companies:
      Apple - Makes DVD Studio, which includes support for making HD-DVDs
      Dell - Only cares about data, not movies
      Hewlett-Packard - Only cares about data, not movies
      Hitachi - Only cares about data, not movies
      LG - Released the first combo HD-DVD/BluRay player (which they have promised to update with better HD-DVD support).
      Samsung - Recently announced that they are going to be releasing an HD-DVD player for the holidays.
      Warner Bros. - Releases on both HD-DVD and BluRay, but is only releasing many of their most popular movies (including the Matrix trilogy) on HD-DVD due to the lack of interactivity available on BluRay players.

      Sun - Only involved because they managed to get Java into the BluRay spec. Some of you may know what a pain it is trying to release Java programs that work well on different versions of the JDK. Well, guess what, it's even worse on BluRay. Read this link to find out how much fun it is for the studios trying to use BDJ, they end up writing the same thing 8 different ways in the hopes that one of them will work in the version of Java on your player: http://www.blueboard.com/bluray/qa_dragonslair.htm If this is any indication of what will be required of them then I imagine that most of the BluRay studios will soon be jumping to HD-DVD.

    6. Re:We have a winner! by metamatic · · Score: 4, Informative

      Blu-ray has region locks. HD-DVD doesn't. That alone is reason enough for me to want Blu-ray to die a flaming death.

      --
      GCHQ Quantum Insert installed. If only our tongues were made of glass, how much more careful we would be when we speak
  2. "Writes"? by Goaway · · Score: 4, Informative

    The International Herald Tribune "writes"? How about "wrote, a year and a half ago"?

    1. Re:"Writes"? by DrEldarion · · Score: 5, Informative
      This is a horrible, horrible Slashdot post. Links to an extremely outdated article, says completely inaccurate information (There's already a $599 Blu-Ray player - the PS3), and on top of that the news about Walmart could have also been mistranslated. From Engadget:

      Update: Pull back the reigns HD DVD fanboys, Akihabara now says that they've made a "huge mistake" with their translation: the original source called it "(chinese characters) HD DVD and (same chinese characters) means Blu-RAY." In other words, Blu-ray HD DVD. Huh? Word to the wise: since both formats use blue lasers, it's best to wait for an English press release before either camp celebrates. Way to go Slashdot!
    2. Re:"Writes"? by MillionthMonkey · · Score: 4, Funny

      On Slashdot, 50% of the news has to be about Sony.

      sony, haha

    3. Re:"Writes"? by Mr.Radar · · Score: 5, Informative

      If you follow the link trail back to AVS Forum (and from there to the original press release in Chinese) it is clear that the press release, in fact, talks about HD DVD and not Blu-Ray. This has been confirmed by at least one person who knows Chinese who says the phrase translates to "blue laser HD DVD." An explanation for the awkward phrasing is offered in this post which says that there is an HD format in China that uses a red-diode laser, hence the specification of the laser being blue-diode.

      --
      What if this signature were clever?
  3. blacklisting by Joe+The+Dragon · · Score: 4, Insightful

    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.

  4. No, Sony will have a $600 player shortly by tkrotchko · · Score: 4, Informative

    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.

    Here:
        http://www.sonystyle.com/is-bin/INTERSHOP.enfinity /eCS/Store/en/-/USD/SY_DisplayProductInformation-S tart?ProductSKU=BDPS300

    --
    You were mistaken. Which is odd, since memory shouldn't be a problem for you
  5. Once more, with feeling. by Murmer · · Score: 5, Funny

    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
  6. HD Radio by supersat · · Score: 4, Informative

    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).

  7. Re:PS3, HDTV, and FCC's analog switchoff by edwdig · · Score: 5, Insightful

    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 ?

  8. Pssst, wanna buy the Brooklyn Bridge? by DumbSwede · · Score: 4, Insightful

    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.

  9. Lot more than "just plastic" by Kadin2048 · · Score: 4, Interesting

    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."