Two things are affecting sales of HD-DVD and Blu Ray.Our local newspaper had an article about the format war last Friday. Basicaly is sounds like the sales of the next gen dvd's are not going well at all. Retailers have said they are selling very few HD DVD players and even less Blue Ray players. They said most consumers wanted to wait and see which format wins before they invest in a new player. Even though Sony is trying to make everyone think they more exclusive contracts, this is not the case. Most movie companies are keeping their options open, including Disney. As far as the PS3, Sony could be in for some trouble. The rumor is that the blue ray player in the game console has not been performing well and the movie quality on the PS3 is no better than a regular DVD.
1. Two competing formats, both with exclusive studios. Of the six major studios (Warner, Paramount, Fox, Disney, Sony-Columbia and Universal), three are exclusive to BluRay (Fox, Disney and Sony), one is exclusive to HD-DVD (Universal) and two are supporting both (Warner and Paramount). The smartest move is to wait and see which format "wins out", but the problem there is if everyone does that neither one will win, much like the DVD-Audio/SuperAudioCD war.
2. To use the DVD-Audio/SACD example again, the quality was better but so many people had a great deal of money invested in their CD collections that there was bound to resistance to upgrading and re-buying. HD-DVD and BluRay face the same problem. With many people having major investments in their DVD collections, are they going to be willing to re-buy movies in the better quality format or will they be satisfied with their current DVDs?
As far as BluRay goes, Sony bit off a bit more than they could chew, in some ways. Starting BluRay while actively competing with HD-DVD plus launching the latest version of the Playstation. With all this going on, it's no wonder the BluRay launch and the PS3 rollout have had trouble.
Side note: when I last visited Circuit City, if you bought the Samsung Blu-Ray player you would get two free BluRay DVDs.


