Blockbuster backs Blu-ray - HD DVD on the ropes?

iTWire ^ | Monday, 18 June 2007 | Adam Turner

[Ernest_at_the_Beach]

In another blow to HD DVD, the giant Blockbuster video rental chain has thrown its weight behind Blu-ray in the fight to see which format is the high definition successor to the humble DVD.

After renting Blu-ray and HD DVD titles in 250 stores since late last year, Blockbuster has decide to stock only Blu-ray in its other 1250 US stores. Customers were choosing Blu-ray titles more than 70 percent of the time, reports Associated Press via the Pittsburgh Tribune-Review.

The release of Sony's Blu-ray-enabled PlayStation 3 games console was also a factor in the decision, said Blockbuster senior vice president of merchandising Matthew Smith. Smith's comments comes after Microsoft conceded that the Xbox 360 games console may eventually support Blu-ray.

While Blockbuster is following market trends, its backing of Blu-ray as the format winner is possible a self-fulfilling prophesy - with other retailers likely to follow Blockbuster's lead. Blu-ray also has some heavy-hitting backers in Australia, with entertainment retail chain JB Hi-Fi declaring it will only stock Blu-ray.

It's true that Blu-ray players are more expensive than their HD DVD counterparts, but at this point I don't think price is a factor. Early adopters aren't too concerned about price tags. In 12 months time when prices fall and the tag becomes important, it will probably already be too late for HD DVD.    

Things are staring to look grim for HD DVD, but the format war could drag on due to the release of dual format Blu-ray/HD DVD players from the likes of Samsung and LG. While this is might seem to be a good thing, it's just going to delay mass adoption of one format and thus stop hardware and movie prices falling. Blu-ray v HD DVD is a battle to the death, and the sooner one dies the better off consumers will be.

[Bogey78O]

a) They lost 300$ on each 20GB model. They lsot about 240$ on each 60GB model.

b) I say “lost” because that was a projection from a year ago. The cost of blu-ray parts has dropped a lot. They’re rumored to be near even.

c) The 360 is worthless for playing HD DVD unless you buy the add-on.

d) Even with the add-on you still can only get 1080/30i (maybe 1080/60i- not sure) on component and 1080/30p on VGA. You can’t get any lossless audio support or 1080/24p or HDMI support.

[Bogey78O]

Ok, I figured if you bought D-VHS you had to be on AVS. ;)

I was wondering if you were Tomlin for a second.

I own The Searchers. Pretty good outcome considering the source. I compared the DVD version I have and the Blu-ray is far more vibrant and detailed. I ripped the movie though and remastered it onto DVD for a friend. Still looks a lot better than the original DVD but the uality took a hit from the blu-ray version.

[mysterio]

I think I’m going to downgrade back to VHS. I never had a fresh out of the box VHS tape without a smudge on it skip and freeze up.

[Bogey78O]

If a blu-ray disc is smudged just rub it down with steel wool and it’ll play fine ;)

Seriously. Blu-ray has a durable coating that is virtually scratch proof.

[mysterio]

Amazing. It only took them 25 years to make a non-defective cd.

[LibLieSlayer]

I have it from a Sony exec that it is pure blog-talk that they are losing money. They make less than they wish to, but the subsidy is a MS/X-BOX fantasy.

BR has a peak data rate of 49 Mbps... HDDVD is stuck at 30Mbps. We have 50 gig discs... they have 30 gig discs. The only people that support HDDVD any longer are Toshiba, MS and AVSMS amirm fanbois!

LLS

[antiRepublicrat]

Actually, I’ve see the blue-diode has fallen to $9 in bulk.

Now that the shortage is over and Sony has already lost over probably $300 million in the cost of the blue diodes they've already shipped in the PS3. The actual cost plus lost console sales due to high price, other loss leaders in the system and other PS3 factors caused Sony's game division to run an almost $2 billion deficit last year. That is a LOT of loss leader to get something to market, just as Toshiba is doing with HD-DVD.

BTW, the now-cheaper diode probably means a PS3 price cut this year, although the cheaper system will make it harder for Sony to recoup its loss.

[cbkaty]

As far as the PS3's possible effect in this new standards war: May Sales: Wii: 338,000 XBox 360: 154,900 PS3: 81,600

Understood....this is just one of the battles....Winning the war will require more time and deep pockets.

I have no real stake in the final win except I want the best quality at the lowest price.....and no one...wants to be stuck with a beta max.....GRIN.

[Tolsti]

At 50”, which is the lowest of the hdtv 1080p realm, you might be right.

However, as sizes go up, you can CLEARLY tell the difference.

Can you tell the difference between a 2 megapixel camera and a .5 megapixel one on a 14” display?

It’s about the same here. My 50+ year old mom keeps going on how much better my 1080P display looks than their 720P one.

[Tolsti]

You can’t imagine how right you are. Even AVS is starting to topple though.

[antiRepublicrat]

I have it from a Sony exec that it is pure blog-talk that they are losing money.

It's far more than blog talk. Both the 360 and the PS3 were money losers upon launch. It's a common financial model for the industry. You sell at a loss, especially in the first year before hardware costs come down, and make up for it with licensing and accessories. The only one not doing that this generation is Nintendo.

Microsoft has already recouped for the 360 (and I believe by now for the original XBox too, which never made money itself), but Sony's recoup date is far, far off. The two billion lost last fiscal year by the gaming division despite excellent high-profit PS2 sales should tell you that.

BR has a peak data rate of 49 Mbps... HDDVD is stuck at 30Mbps. We have 50 gig discs... they have 30 gig discs.

I already said I generally prefer the better technology. But I'm just sitting back, waiting to see who wins before I buy anything.

[G Larry]

I’m going to enter the country illegally and get a federally issued blueray DVD player.
I understand that’s a “feature” in the new bill......

[Bogey78O]

Actually the gaming division at Microsoft is 5 billion down still since 2001. The original Xbox never recouped its money and MS cut it off to stop the loss. The 360 is just breaking even despite the high failure rate.

[antiRepublicrat]

At 50”, which is the lowest of the hdtv 1080p realm, you might be right.

Read the article. 50" at 8' is almost twice the perceptible resolution. So we're talking probably a screen size larger that what you can find at most stores (or what most people can afford), sitting much closer, or a combination of both.

But with the way the stores are pushing HDTV, I'm willing to bet that most of those who own a 1080p display don't even see it's resolution. They just wanted to get the best thing and are therefore putting expensive ZR-rated tires on a Prius.

I'm not trying to say that 1080p is bad, it is in fact awesome, but it's way over-capacity for a lot of people buying it.

My 50+ year old mom keeps going on how much better my 1080P display looks than their 720P one.

There are many other factors in how good a display looks besides resolution.

[huldah1776]

I won’t either, and have never had cable or anything else besides a P.C. So, without TV do you really think I’ll be missing anything?

[Tolsti]

1080p is one of the top matters for now. The next is really contrast ratio.

I’m a bit of a home theater enthusiast, so I’m not going to go into the basics. However, a *good* 1080p will look much better than a good 720p at nearly any distance.

As time goes on, 720p is gonna go away like 486 computers. It’s obsolete.

[antiRepublicrat]

Actually the gaming division at Microsoft is 5 billion down still since 2001.

You're right, I forgot how long ago I read the article. It forecasted profit "next year" and I thought I read it last year. That means they are supposed to be in the black for their entire device division next year, but unfortunately the miserable Zune will be dragging them down. The 360 itself is by now at least cost-neutral if not profitable, and all the income related to it (licensing, accessories, Live) is turning a profit. Now they just have to work off the losses.

The one company I can see smiling now is Nintendo, around 7 million Wiis sold with a profit on each, plus licensing, accessories and game downloads (5 mil sold @ min $5 each). That doesn't count that the DS almost literally prints money.

The original Xbox never recouped its money and MS cut it off to stop the loss.

They cut it off because the next generation came out.

Non-disclaimer, I have never had an XBox or 360 and have little desire to buy a 360 in the future.

[Busywhiskers]

Does this mean that my 8-tracks won’t work anymore?

[antiRepublicrat]

1080p is one of the top matters for now. The next is really contrast ratio.

I would think contrast ratio and refresh rate are more important at a distance or with a smaller screen, while resolution would be more important with a monster screen or with you sitting very close.

The physiology just says your eyes can perceive only so much resolution. It's like having a tweeter that goes up to 100 KHz when 20 KHz is the max a person can perceive (less for most adults).

All I'm saying is buy with care. If you get the 1080p, know the circumstances where that resolution is worth the higher price. Maybe get one of these: :)

[Tolsti]

To get detailed, we want something now that’s 1080p, 10,000+ contrast ratio, and can take 24p input and display it at 120hz.

Most new TV’s by 2009 will be able to do that.

With LED backed DLP and LCD, you should except 100,000 to 1 contrast.. The human eye can detect 1 million to 1.

24p is the next ‘thing’ to be compatiable with, and yes that is fairly important for a smooth 1080p picture.

To most people, that’s like trying to explain why x CPU is better than y.. But the stats do help the visual quality.