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Tosh's HD DVD Chinese licensing deal signals defeat for Blu-ray

Consumer electronics
Consumer electronics

Published: Monday 23rd April, 2007 | Author: Bob Crabtree
Companies: Toshiba (All Toshiba content)

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Is Sony's Blu-ray Disc technology set to suffer the same fate as Betamax VCRs?

Quite possibly, judging by the news from International Herald Tribune that Toshiba - Sony's deadly rival in the high-definition disc-player war - is licensing its HD DVD techology to Chinese manufacturers for low-cost production.

Although the parallels between the Betamax vs VHS war aren't precise, it's worth remembering that it was JVC's decision to widely license VHS that ended up being the deciding factor.

The one certain result of Toshiba's licensing decision is that set-top HD DVD players will be available at massively lower prices than Blu-ray players.

Confirming that prices of HD DVD are going to become very affordable, the AV Science Forum is reporting that Chinese manufacturer Fuh Yuan has signed a deal to make two million HD DVD players for the giant supermarket chain Walmart (owner of ASDA in the UK).

If HD DVD is pitched at affordable prices and Blu-ray stays out of reach of the masses, then the Toshiba system looks certain to grab the lion's share of the worldwide market for hi-def players and win the current formats war.

About the only thing that might keep Blu-ray Disc in with a shout is if it, too, gets licensed to the Chinese - and at an affordable rate.

If that doesn't happen, Blu-ray Disc might stagger on for few years but looks sure to eventually go to the wall as Betamax did.

Thoughts? Share them with us in the HEXUS.community.

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HEXUS.community :: discussion thread about this article

External.links

International Herald Tribune - In switch, Toshiba turns to China
AV Science Forum - Fuh Yuan will make two million HD-DVD players for Walmart
Wikipedia - Videotape format war

HEXUS.community :: your right2reply


Quote: moby_matt
I take it that this means ALL duplication has to go through Sony? That in itself could kill the format as it could be considered a closed market...

All duplication does not have to go through Sony. There are already some which are non-Sony controlled and new ones coming up from what I have read.

These will do adult material without any hassle.

But right now, I think all replication facilities are pretty much nearly upto capacity.Quote
DVD duplication facilities can easily be converted to produce HD-DVDs apparently, they may even be able to produce both alternately, making it very efficient to run a plant.

BluRay needs a different production process so new plants or production lines are needed. Obviously no-one is going to build these without a vested interest, and as Sony are already a large disc manufacturer, they are bound to be the first/main duplicator of BluRay titles. At least initially, unit volumes rise of course and it becomes financially viable for other producers to invest in the new systems.Quote
Fashion vs Economies of Scale...
Markets & marketing, by their very nature, do not have much logic. It’s all to do with greed and selling to greed requires fashion. Those money-marketing “yammamotos” at Jap Inc. have honed their craft well, starting with the days of low tech cheapos to the heights of techno fashion and the classier their act, the deeper they bite into the cake that is, “Fashion sells”. Yes, every budding and seasoned kelptomaniac knows that but few achieve it and the more glitzy their perceived glamourised position is, the more entrenched their bottoms become. Boardroom strategy battles included.

Economies of scale enforces education about, “The Limits of Greed”, something that perpetual income kleptos still have wet dreams about and witness the “Digital Rights” free-for-all grab. Only from the twisted minds of the demoncrazy crowd can such immoral ideas be promoted and established as normal. Including tidbit remittances of plundered loot perfumed as “Acts of Charity”. One reason why you cannot bake a $1 bread loaf but can buy them everywhere. Yes, sony-san still have enough petty cash to replay the VHS-Betamax game but all these kleptos are looking to the wider picture for if the trick can be pulled, they’ll get got another 10-odds years of easy Viking plunder. The “market” is just brainless fashionites looking for an answer to their existence, your latter-day “god” seekers. Humans who have no absolute maturity have no logic but plenty of rationalities and long may Tosh plunge the knife to teach kleptos everywhere that the dumb market too can smell stench once their nose is switched on. Looks like another sort-of US-China spat where the sophisticated developed, but immoral persona, counters the demonised naïve low-lifes. But then, they haven’t count on tradition, have they, and tradition matters most when you need to stop immorality.Quote
wheelus,

Another interesting analysis.

Not sure whether I prefer this one or the other one (http://forums.hexus.net/showthread.php?p=1044506#post1044506), though.

:confused:Quote
this forum has its own Michael Moor xDQuote

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