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Sony Paid Warner Bros. $400 Million to Go Blu-Ray?

eldavojohn writes "How much would you pay to be the leading video media technology right now? Is $400 million too much? Sony didn't think so and this article speculates that's how they won the Hi-Def format war. 'With billions of dollars in global sales at stake, experts had predicted the Toshiba-Sony battle would go on for years - not unlike the 1980s battle of videotape formats between VHS (Matsushita) and Betamax (Sony). That war lasted a decade, leaving Sony battered and humiliated. So how did this epic battle come to such an abrupt end? The answer lies in part with the bruising Sony experienced with Betamax, which, like Blu-ray, was also the better product on paper.'"

8 of 487 comments (clear)

  1. Re:Market Isn't Even Ready by edwardpickman · · Score: 5, Interesting

    Why is everything about download? The primary reason people download is for file sharing sites so some how I don't think Sony is bemoaning loosing that business. I'm old enough to have spent my whole childhood preVHS. The early Betamaxs hit in my late teens but only recorded an hour and there were no prerecorded tapes. We didn't have cable in my area so unless you saw a movie the first week or so of it's release you had to hope for a cut down TV version of the film. I find it amazing how spoiled people have become in a little over a generation. Technology just isn't moving fast enough to suit their own personal needs. A hundred years ago most people still rode horses or walked, there was no radio and TV was decades away. Even movies were a rare treat and they were all shorts. These days if they can't get HD video beamed directly to their iPods they think we're still in the stone age. BluRay was never meant as a download format. Apples and oranges. When transfer rates get up to the point of supporting HiDef downloads I'm sure there will be yet another format. You might as well complain about not being able to download Hi8 movies. It was never intended as a download format.

  2. Re:Or... by powerlord · · Score: 5, Interesting

    From a movie-watcher's perspective, BluRay has absolutely 0 technical advantages.


    Not entirely true. It had at least ONE major advantage, less market confusion with DVD.

    I've seen at least two instances personally (not counting the numerous anecdotes mention here on slashdot :) ) where consumers were confused that they needed a new player to watch HD DVD discs, since they owned a DVD player and an HD TV.

    With Blu-Ray, there was much more of an instinctual "This is a new format that needs a new player".

    I'd also wonder if Blu-Ray's choice of using Blue for their media vs HD DVD's Red made a difference from a psychological point of view. Most people associate Red with Danger, while Blue is usually associated with Calmness.
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  3. Re:Or... by evilviper · · Score: 4, Interesting

    It stores more data. From an end user perspective, isn't this pretty much the #1 thing that matters?

    No, I'd say capacity was the #2 thing that mattered.

    #1 was: Blu-Ray discs don't get scratched.

    Granted, geeks know that the DRM on blu-ray is harsher than that on HD-DVD,

    "Geeks" here on /. "know" a lot of things that aren't true...

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  4. I wonder if Nintendo and Microsoft see... by YojimboJango · · Score: 4, Interesting

    I wonder if Nintendo and Microsoft see the opportunity for a semi-proprietary disc format here. They've got a stable and cheap format that's already gone through all it's development phases and is proven to hold 50 gigs. Five years from now getting a hold of a consumer level HD-DVD burner will be a real rarity, so piracy would be really hard. Blue-Ray may have won the movie format war, but there's still a lot of potential in this format by virtue of it's soon to be obscurity.

  5. The PS3 cost Sony even more. by graymocker · · Score: 4, Interesting

    Even if this specific rumor turns out to be false, the broader implication that Sony was willing to sacrifice to ensure the success of Blu-Ray is undeniable. For a while Sony's use of a Blu-Ray player in PS3s was considered a blunder. The fact is, Blu-Ray is more important to Sony than the PS3 was. If coming in behind their competitors in this video game generation is what it cost to make Blu-Ray the HD standard, Sony is perfectly happy with that. Of course, there remains the possibility that Blu-Ray will turn out to be a competitive advantage for the PS3, in which case it would be so much the better. The point is, from Sony's perspective, it didn't matter if the Blu-Ray turns out to be good for the PS3 or not, because they consider it a win either way. If it is, they're obviously happy, but even if it isn't, they're still happy because they still win by massively inflating Blu-Ray's install base. For Sony, Blu Ray>PS3.

    In contrast, to MS the 360 was a much higher priority than Toshiba's HD-DVD. MS has been trying to get into our living rooms for over 10 years now. (Bill Gates was already obsessing about it in The Road Ahead and that book was written 13 years ago.) All things being equal they'd prefer Toshiba to win and Sony to lose, of course, but it wasn't important enough to them for them to risk 360's success on.

  6. Re:free market? by Abcd1234 · · Score: 5, Interesting

    We got to see at least three major (and differing) implementations of Marx' setup.

    I hate to break it to you, but no, we didn't. Last I checked, Marx wasn't a big advocate for totalitarianism.

  7. I hate that point. by hudsonhawk · · Score: 4, Interesting

    Every time there's an article about Blu-Ray someone always trots out the point that Blu-ray is not, in fact, Sony's, but is actually from a larger group of manufacturers and media companies.

    Well, yes, there are a lot of members, but Blu-ray is still Sony's. They not only have the most invested in Blu-ray, they have the most to gain:

    1) They developed the hardware platform entirely on their own and gain royalties from the format's sales
    2) The success or failure of their gaming console is tied inexorably to the success or failure of the format
    3) The decision to splinter off from the DVD Consortium, following the DVD Consortium's choice of HD-DVD as the next format (supposedly chosen because it would be ready sooner), was entirely theirs. Broader industry support came after that decision, and was reportedly driven by studio fear of Microsoft. Without Sony, there's no format war.

    There's a very very good reason that people associate this format with Sony - it's their format, it's just supported by other people. Lots of people support the CD format but that doesn't make it any less Sony / Phillips' format.

  8. Re:free market? by Penguinisto · · Score: 4, Interesting

    Or rather, it confined it's holocausts to the 18th & 19th century

    I wouldn't be so sure... Mao managed to wipe out (roughly) 100+ million of his own people during the "Great Leap Forward"... over 10% (at the time) of China's entire population. The USSR comes in at a somewhat close second, and only had a peak population of ~300m during the 1980's. I'd have to go dredging numbers (population vs. deaths during a given Purge or Gulag expansion period, and esp. during the starvations in the Ukraine), but I'm fairly willing to wager that as a percentage of the whole, it was a whole lot safer (odds-wise) to live in 18th/19th century England than it was to live in 20th Century Russia.

    It's one thing to get killed due to willingly working under unsafe conditions and the like. It's another entirely to get executed or sent to die in a slave labor camp, just because the neighbor down the street reported you as a 'counter-revolutionary' to the local authorities. You're still perfectly free to walk away from the latter situation with at least a reasonable chance at continued survival...

    Now as to whether or not free and open Capitalism would ever get to the point where millions are killed off due to malice on the part of those at the top of said system? Remains to be seen. OTOH, it's a lot harder to pull off than if you were in, say, Stalin's boots...

    /P

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